Changing Faced In The World Business Business Essay Example

you take that first step - the only way forward is to start! I am confident that this book, specifically tailored for Fashion Entrepreneurs, will provide valuable insights. I hope that you will soon embark on this journey as an Entrepreneur and enjoy it as much as I have. Just START! Associate Professor Dr. Alvin Chan serves as the Academic Director of Raffles-C.U. International College (RCU).

In addition to being an academic, Professor Alvin Chan is also an Entrepreneur and serves as an advisor/consultant for early-stage start-ups in Asia. He obtained a BA (Merit) in Economics and Southeast Asiatic Studies from the National University of Singapore, a Post-graduate Diploma in Education from Nanyang Technological University (Singapore), and an MBA from Edinburgh Business School (UK). Furthermore, he earned his Doctorate of Business Administration (DBA) from California Coast University.

Introduction to entrepreneurship

The term Entrepreneur originated from French.

The term "entrepreneur" is a combination of "Entre," meaning "in between," and "preneur," meaning "occupations." Thus, many entrepreneurs start their journey after being dismissed from previous positions. In the early years of Silicon Valley in the 1960s and 1970s, aspiring entrepreneurs would work tirelessly in the technology department of a large hardware company for years before questioning why bosses enjoy all the financial rewards or if software is necessary alongside hardware production. Managers often saw these engineers as too focused on philosophical inquiries, hindering productivity and leading to termination. However, times have changed. Today, individuals with innovative ideas, unwavering dedication, and passion can turn their ventures into success stories by nurturing belief and zeal while strategically planning for risks.

Entrepreneurship provides an equal opportunity for individuals of all ages, genders, educational backgrounds, and geographic

locations to pursue their passion projects and generate income. According to Steve Jobs, instead of asking customers what they desire and attempting to meet those demands, it is more efficient to concentrate on developing a product or service that meets a need before customers even recognize it.

Making the demand for one's merchandise once it is ready for the launch. That's what you call being proactive and thinking outside the box. An entrepreneur builds an empire on his vision; the man who proved it true and went on to create one of the biggest empires in India from scratch was Late Shri Dhirubhai Ambani. The man went from rags to riches in true sense and was listed in the Forbes list of billionaires. He started as a small-time worker with Arab Merchants in the 1950s but within a span of 8 years, he decided he wants to be his own boss.

In 1958, he started his spice business and then ventured into the textile industry by establishing a mill near Ahemdabad. In the same year, he founded Reliance Industries, leading to several success stories and expansion tales.

The company has widened its range of industries by adding Telecom, cyberspace, petrochemical, power, and retail. There are many entrepreneurs who have become the masterminds behind innovative projects that inspire not only children today but also various writers. Let's consider someone who is much younger than Mr. Dhirubhai and has established a unique position for himself - Gurbaksh Chahal or G as he is commonly known. In 1985, when Gurbaksh was just 4 years old, his family immigrated to America through a lottery visa they had won.

His parents had to work

in modest jobs to provide education for their four children. Education was extremely important for the Chahal family, just like it is for many immigrants. However, G left high school at the age of 16 to establish Click Agents, an Internet advertising company. He later sold this company for $40 million. In January 2004, he started another company called BlueLithium - an innovative Internet advertising company. BlueLithium was primarily focused on data, optimization, and analytics and became a pioneer in behavioral targeting.

BlueLithium, a company that has consistently been recognized as one of the top 100 private companies in America by Always On for three consecutive years, was honored as the Top Innovator of the Year in 2006. This prestigious title had previously been held by giants such as Google, Skype, and Salesforce.com. On September 4th, 2007, Yahoo! made an announcement regarding its acquisition of BlueLithium for $300 million in cash.

The founder of BlueLithium, Chahal, has received multiple awards throughout his career. These include being named Top Pioneer and Young Tech Entrepreneur of the Year. In addition to these accolades, he was also recognized as the Most Influential CEO in 2011. Furthermore, on April 29th, 2010,;Chahal was bestowed with both the Leaders in Management Award and an Honorary Doctorate degree in Commercial Science from Pace University. These honors were given to acknowledge his remarkable entrepreneurial achievements.

In conclusion,;Ben Weissenstein's wise words: "Everything starts with nothing" should be remembered. This serves as a reminder that success is not immediate but instead requires time and perseverance.

5 Ben is a natural entrepreneur, receiving his first business card at the age of nine. If you're interested in learning more about this young

man who has become the CEO of various companies, we encourage you to conduct your own research.

Concept

Entrepreneurs are viewed and defined differently by individuals. The diagram below depicts some of these perspectives: - As the saying goes, a true entrepreneur is fully committed to their endeavors, while others simply contribute. They understand that they may need to take risks in order for their ideas to succeed.

Even if they are someone else's eggs, metaphorically speaking, most entrepreneurs are risk takers. Many entrepreneurs are prone to taking calculated risks, while others are even gambling on the unlikely chance of another Kiss reunion tour.

The ability to inspire others to believe in a larger vision distinguishes a successful entrepreneur from the average person, according to Anita Roddick, the founder of Body Shop. She believes that entrepreneurship goes beyond survival and fosters creative thinking, stating that business is not solely based on financial science but revolves around trading: buying and selling.

Categorization

Entrepreneurs can be classified in various ways:

• Type of Business
• Technology in use
• Motivation
• Growth
• Area of Development
• Gender & age
• Others - Scale of operation

This is a broad area of study, but our focus will be on further explaining the first three classifications.

TYPE OF BUSINESS

There are various types of business including business enterprisers, trading enterprisers, and industrial enterprisers. Business enterprisers play a crucial role in generating fresh ideas and initiating new ventures. For instance, Ben Weissenstein is a business enterpriser who founded a service to oversee garage sales. Trading enterprisers focus on purchasing and selling goods and services both domestically and internationally, with a particular

emphasis on developing their brand. On the other hand, industrial enterprisers are pioneers in creating innovative products such as clothing, fabrics, electronics, etc.

In simple terms, industrial entrepreneurs are the first makers and pioneers of the next generation. Corporate entrepreneurs are the rising stars responsible for planning, execution, and management in the corporate world. Agricultural entrepreneurs are involved in the production and selling of agricultural products such as dairy and gardening.

use of technology

Technical entrepreneurs primarily rely on product and implement various quality measures and new advanced technology to produce high tech products. Non-technical entrepreneurs develop new branding and marketing strategies to increase product visibility. Their focus is on marketing rather than the product itself, so they regularly market cheaper products. Professional entrepreneurs are always full of new ideas.

They reinvest the profits from one business into building another. They continuously reinvest their profits. For example, after his successful venture in the fashion world, Rohit Bal designed jewelry for Kirtilals and entered the hospitality industry with his restaurant Veda.

Motivation

Pure entrepreneurs are individuals who analyze numbers and are driven by psychological and economic rewards such as money, fame, success, and power.

Induced entrepreneurs are those who are motivated by incentives, grants, and benefits offered by authorities, such as duty drawback for exporters. Motivated entrepreneurs do not require profits to satisfy them; a sense of accomplishment and fulfillment is their motivational factor. Spontaneous entrepreneurs inherit successful entrepreneurial traits through their genes.

Entrepreneur by birth.

KNOW YOURSELF

Last week, I happened to overhear a fascinating conversation between two close friends. Although eavesdropping is not morally right, the discussion was so captivating that I couldn't resist listening in. One of these friends, whom we'll refer to

as Miss M, had become an entrepreneur and opened her own clothing store after completing school. On the other hand, the other friend, Miss S, was working as a salesperson in a company. Initially, they both admired different aspects of each other's lives.

Both Miss M and Miss S led contrasting lifestyles. Miss M enjoyed a carefree life, with the freedom to sleep in, shop whenever she pleased, earn a substantial income, have flexible working hours, and plan vacations without seeking permission. In contrast, Miss S had a secure life without the stress of decision-making or working on weekends and holidays; she only worked five days a week.

However, upon hearing their stories, I realized that both faced unique challenges and obstacles in their careers. As they say, the grass is always greener on the other side. Entrepreneurship and salaried employment each have their own advantages and disadvantages – they are like two sides of a coin. The nature of work, responsibilities, and obligations differ when one works for oneself versus working for someone else.

Just like how individuals face different rewards and penalties depending on their abilities, some may excel in independent work while others may struggle. For example, while I am unable to design or construct my own house due to lack of expertise, someone else may not have the same writing style as me. Each person possesses unique qualities that distinguish them from others.

Equal opportunities result in a sense of isolation in the market for each individual.

The Essence of Entrepreneurship

An entrepreneurial venture comprises the following components, as depicted in a funnel diagram:

• Product: This refers to a final outcome that meets a demand or desire. It
  

can be a physical item, concept, approach, information, object, or service. A marketer presents tangible and intangible attributes (such as benefits, characteristics, functions, and uses) to buyers for acquisition.⁷

The process of designing a business model is a crucial part of business strategy.
There are three types of business models - Business to business, Business to consumer, and Consumer to Consumer.
All the components of entrepreneurship will be explained in detail in further modules.

MYTHS; MISCONCEPTIONS

There are various illusions and false beliefs that surround the world of entrepreneurs. These can be misleading and therefore it is very important for future entrepreneurs to be aware of the facts and the myths to guide them to the path of success. Women cannot be entrepreneurs.

A common statement in Indian society, dominated by males, is that entrepreneurship is equally for women as it is for men. Over the years, many celebrated women entrepreneurs have built successful empires. One such example is Shahnaz Hussain, the CEO of Shahnaz Herbals Inc., who is a prominent Indian female entrepreneur renowned for her herbal cosmetics, especially skin care products. Currently, the Shahnaz Husain Group operates more than 400 franchise clinics worldwide, spanning over 138 countries.

Her group's merchandise is sold in leading global shops including Bloomingdale's (New York), Galleries Lafayette (Paris), Seibu (Japan), Harrods and Selfridges (London), and La Rinaeccente (Milan). She has been awarded the Padma

Shri, a civilian award by the Government of India in 2006, and Success Magazine's "World's Greatest Woman Entrepreneur" award in 1996. Ritu Kumar is a name that the Indian fashion industry recognizes with global presence. She is the empress of Indian haute couture and one of India's leading and most talented fashion designers. Ritu started her venture with four hand-block printers and two looms in a small village near Kolkata in the late 1960s. She was also the first woman to introduce the boutique culture in India under the brand name 'Ritu'.

Today, she has 34 mercantile establishments in major cities in India and one establishment in America. Ashima and Leena, the sister-in-law designer couple, began their professional career in the fashion industry at Big Joes. Currently, they have retail presence in India through stores like Kaaya, Kimaya, and Vama, as well as exclusive exhibitions in Dubai, the UK, and the USA. They have plans to expand into interiors and accessories to establish themselves as professional entrepreneurs. One of the most crucial aspects of any business is investment, which often leads to sleepless nights for many aspiring entrepreneurs. Once the product or service is finalized, the most important question to answer is how much initial capital is required and where the investment will come from.

The prevalent myth regarding this aspect of business is that "Most successful entrepreneurs start their companies with millions in venture capital to develop their idea, buy supplies, and hire employees." However, the reality is that venture capitalists primarily dominate selected high-tech industries and typically do not fund start-ups. Despite the dominance of venture capitalists in technology-driven start-ups, Microsoft Company, founded by Bill

Gates and Paul Allen, did not manage to secure venture capital. Another example is the networking giant Cisco Systems, where start-up financing was generated from personal savings and loans. "Banks don't lend money to start-ups" is another commonly held belief. However, statistics prove this assumption to be completely incorrect.

16% of all funding comes from banks and those just starting out need to approach banks in the correct manner.13 In fact, a new term was created for these loans - MICROCREDIT. It involves providing extremely small loans (microloans) to individuals in poverty in order to encourage entrepreneurship. These individuals lack collateral, steady employment, and a verifiable credit history, and therefore cannot meet the minimum requirements to access traditional credit. Microcredit is part of microfinance, which includes a wider range of financial services for the very poor.14 Forbes magazine described microfinance as the "buzzword of the decade," suggesting that philanthropy aimed at alleviating poverty can also be profitable for both institutional and individual investors. "Billionaires, global leaders, and Nobel Prize recipients are praising these direct loans to uncollateralized aspiring entrepreneurs as a way to lift them out of poverty while creating self-sustainable businesses," the magazine stated.14 Contrary to the belief that debt funding is limited for start-ups, it is actually more prevalent than equity funding. Therefore, it is said that all you need is a well-calculated and presentable proposal to secure financing for your dream project.

Entrepreneurship entails taking unpredictable and adventurous risks. Typically, startups lack sufficient funds or the need for extensive planning and strategizing. However, upon examining the journey of an entrepreneur, one realizes that there were numerous calculated risks involved after inception, with a clear

goal in mind. This process includes extensive reading, planning, thinking, analyzing the advantages and disadvantages, strategizing, and organizing that is not evident in written text.

The main focus is on the birth and rise of the star entrepreneur.

Qualified & experienced Entrepreneur

Education is important but not necessary for success. Gurbaksh Chahal, an Indian-American, achieved success at the young age of 28. He founded two advertising companies worth $341 million and later appeared on TV shows and published a memoir. Despite being a high school dropout and inexperienced, he started his first company called "Click agents" in 2004.

Among the countless individuals who have achieved notable success, there are several who deserve recognition. For example, Frederick Henry Royce, an interior decorator for cars and a co-founder of Rolls-Royce, overcame the fact that he dropped out of elementary school. George Eastman, the distinguished founder of Kodak, also dropped out of high school. Likewise, Walt Disney, the visionary behind the Walt Disney Company, left high school at the age of 16.

Obtaining wealth and generating money is not easy, regardless of whether someone is born rich or poor. It is not always the case that successful entrepreneurs have a strong financial foundation to rely on. Sometimes, individuals who are born into wealth end up losing it all and dying in poverty. Entrepreneurs are not always financially successful and may not be wealthy. At times, they may initially make large profits but their improper management of funds can lead to their downfall. Only the top 10 percent of entrepreneurs earn more money than employees.

And the typical entrepreneur earns less money than they would have earned working for someone else. Being alert

and adaptable is crucial to making the right decisions. It is often said that the path to success and failure is the same; where you end up depends on the choices and decisions you make along the way.

ENTREPRENEUR AND ECONOMIC DEVELOPMENT

In a world where ideas drive economies, it is not surprising that innovation and entrepreneurship are often seen as inseparable partners. Governments around the world are beginning to realize that in order to sustain progress and improve a country's economy, people must be encouraged and trained to think outside the box and constantly develop innovative products and services.

The previous methods of generating revenue are no longer sufficient for long-term economic prosperity. The role of 16 entrepreneurs in the state's economic system should not be underestimated. Unemployment is a major concern for every country, regardless of its level of development. It has direct and indirect impacts on the state's economy. Developed countries provide unemployment benefits to their unemployed workers.

Entrepreneurs not only pose a threat to societal security, but also play a crucial role in creating job opportunities for all segments of society. They serve as sources of income for numerous households. Their primary objective is to generate wealth for themselves and their employees by producing goods and providing services. As a result, the per capita income of a country increases, contributing to economic growth. Additionally, their innovative ventures introduce novelty and diversity into the market.

They sometimes bring products that not only become a sensation nationally but also internationally. The trend spreads like a contagious fever. This has a positive impact on the economy in three ways - Firstly, the entrepreneur pays direct taxes

because of the huge profits generated from increased sales, secondly the customers who purchase/use the product pay indirect taxes, and thirdly there is an influx of foreign currency due to exports. Social entrepreneurs make significant contributions to both society and the environment. One of the most notable social entrepreneurs is Muhammad Yunus Khan, the founder of Grameen Bank - Bank of the Poor.

GrameenA Bank was established in 1976 in Bangladesh with the aim of providing microfinance loans to marginalized individuals, specifically those who were consistently rejected by conventional banks. In recognition of his efforts, Professor Yunus Khan was awarded the Nobel Prize in 2006. He highlighted the potential for significant development achievements by making financial resources accessible to the poor under appropriate and reasonable terms and conditions.

As of December 2010, GB has 8.34 million borrowers, with 97% of them being adult females. GB operates in 2,565 subdivisions and provides services in 81,376 small towns, covering over 97% of all small towns in Bangladesh. Additionally, Anita Dongre, the creative director of AND Designs India Ltd, pioneered the concept of "Shop for Change," a collection of western wear made from 100% Fair Trade certified cotton for Indian women. This use of Fair Trade certified cotton ensures that farmers receive a fair market price for their products and are not deceived by middlemen. Therefore, Anita Dongre contributes not only economically through retail sales but also socially through fair trade practices. Entrepreneurs like Prof. Yunus Khan, Designer Anita Dongre, and many others have brought new dimensions to their business and inspired others with their vision.

They have set benchmarks for themselves in their respective industries while contributing to society. Transforming

ideas into economic opportunities is the essence of entrepreneurship. History has shown that practical and innovative individuals who are entrepreneurial, resourceful, and willing to take risks have significantly advanced economic progress¹⁸.

FASHION ENTREPRENEUR

The term "fashion entrepreneur" is relatively new but fashion entrepreneurs have existed throughout history¹⁹. Ralph Lauren, Levi Strauss, Coco Chanel, Louis Vuitton, and Rene Lacoste are not only the most famous and successful entrepreneurs in their countries but also globally recognized. Other fashion entrepreneurs include Stella McCartney, Harold Tillman, Philip Green, Nicole Farhi, and Samata Angel. The Indian counterparts of these international fashion entrepreneurs are equally successful and internationally renowned, although they may not have as extensive a retail presence as Levi Strauss or Louis Vuitton. Some of the most celebrated fashion entrepreneurs in our country are Rohit Bal, Manish Arora, JJ Valaya, Ritu Beri, etc.

Fashion entrepreneurship is a dynamic and constantly evolving industry with a seasonal rhythm of 4-8 seasons, depending on the brand and clientele. The fashion industry is driven by demand and design, making product innovation crucial for a successful fashion retail venture. Along the way, the fashion product becomes the unique selling point (USP) of the brand and a recognition for the designer. Each Indian designer has their own distinct style and design sense, which creates a unique difference among them and establishes a niche in the market.

fashion retailing

Clothing has become an essential part of everyone's life, not only for the rich and affluent but also for the masses. It is popular among both young and old, seen from fashion weeks to the streets of India, from flea markets to shopping malls, from high-end fashion to surplus exports. Our clothes

are the first impression we make on people, which is why staying fashionable and up-to-date with trends is a necessity.

For today's fashion-conscious generation, there are fashion retailers that make catwalk fashion accessible to us. These retailers offer the newest trends in fabric, colors, designs, and details. The retailer who can keep up with rapidly changing fashion trends will succeed. The key to success is having the right product in the right location at the right price.

India's retail industry is currently in its initial stages and has yet to reach its full potential. Retailers worldwide have the option to sell directly through online platforms and catalogs or focus solely on their brick-and-mortar stores. Changing lifestyles and shopping trends have led to a surge in online retailing, attracting new players to the market. Organized retail is relatively new to Indian consumers and holds significant potential. According to recent statistics, India and China are expected to contribute more than 91% of retail sales in the region by 2011, with an estimated annual growth rate of 1%.

According to a study titled 'The Great Indian Bazaar: Organised Retail Comes of Age in India' by McKinsey & Company, organized retail in India is projected to increase from 5% of the total market in 2008 to 14-18% by 2015, reaching a value of US $450 billion. Additionally, a report titled 'India Organized Retail Market 2010' by Knight Frank India reveals that between 2010 and 2012, approximately 55 million square feet of retail space will be available in cities such as Mumbai, Delhi-NCR, Bengaluru, Kolkata, Chennai, Hyderabad, and Pune. The existing retail space of 41 million square feet is expected to grow to

95 million square feet. Furthermore, luxury retailing is anticipated to expand due to changing government policies, with brands like Paul & Shark, Zegna, and Diesel planning to open more stores. This growth is not limited to fashion and accessories but also extends to FMCG and stationary retail.