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ARTICLE REVIEW ON

ENTREPRENEURSHIP IN
GLOBALIZING ECONOMY
By- R. Himaja(T-11028)
Abhiram patro(T-11005)

preface
Globalisation of economies is generally attributed to the
policies of economic liberalisation, deregulation and
privatisation adopted by governments in various countries.
However, the Information Technology revolution and the global
business opportunities created by innovative entrepreneurs
using the capabilities of the new technology, have also had an
important role to play in the process of globalisation.
This article review focuses on the opportunities arising due to
globalization and tries to give a solution to the challenges faced
by the entrepreneurs.

Abstract
-Introduction to the terms
-Indias approach to the globalizing environment
-Opportunities to the entrepreneurs
-Past and recent challenges to the entrepreneurs
-Conclusion

Introduction to the terms


Entrepreneur is a person who identifies a potential
business opportunity and takes the initiative and
coverts his plans into action.
Globalization is the process by which businesses or
other organizations develop international influence or
start operating on international scale.

Indias approach in globalizing


economy:

Dedicated ministry for small scale industries at the


federal level supported by several agencies at federal
and state levels.
While most countries place most entrepreneurial firms
in the category of small and medium-sized enterprises
(SMEs), India refers to such firms as Micro, Small and
Medium Enterprises(MSME).
Enactment of Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006

Micro, Small and Medium Enterprises


Development (MSMED) Act, 2006:
The act provides legal framework for enterprise
which includes the manufacturing and service entities.
In accordance with the provisions of this Act 2006, the
Micro, Small & Medium Enterprises (MSME) are
classified into
1. Manufacturing enterprises and
2. Service enterprises

Manufacturing Enterprises: The enterprises engaged in


the manufacture or production of goods. The
manufacturing Enterprises are defined in terms of
investment in Plant & Machinery.
Service Enterprises: The enterprises engaged in
providing or rendering of services and are defined in
terms of investment in equipment.

Investment limit MSMEs:

Strategies:
Credit assistance to SMEs in India is included along with
other national priorities. Such funding assistances to
priority sector consist of the credit facilities accorded to:
(i) agriculture,
(ii) small scale industry including loans for setting up of industrial estates,
(iii) small business,
(iv) professional and self employed persons,
(v) retail trade,
(vi) education,
(vii) housing

Opportunities:
With fund flowing from global investors and
angel investors in the form of FDI, FPI, FIIs now
every new organization has got an equal
opportunity to survive and succeed in the
market.

Challenges faced by
entrepreneurs:
Managing work force diversity
Adopting to technological advances
Regulatory issues in different countries
Cross cultural effect
Inter linked global economy
Stiff competition to the SMEs from MNCs

Conclusion:
A question arises;

Globalization has been a blessing or a


curse?

References:
Article on ENTREPRENUERSHIP IN GLOBALISING ECONOMY by Mathew
manimala
Article on CHARACTERIZATION OF CULTURE by Hofstede (1980)
Report on THE ROLE OF SMEs AND ENTREPRENUERSHIP IN A GLOBALISED
ECONOMY by Swedens globalisation council
http://www. Ncsb2006.se/pdf/ Enterpreneuship.pdf
www.regeringen.se/..d614cc47.pdf