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Government-led Entrepreneurship
As India achieved independence from the British rule in 1947, the architects of the young
nation had to accomplish the big task of laying the economic foundations for building a nation. Intrigued by the enormous work, the founding fathers adopted a mixed economy model of
economic governance. India’s 1st Industrial Policy (1948) emphasized on growth predominantly
through government-led industrialisation. The public sector was seen as the catalyst of economic
development. Also, provisions of the constitution focused on the larger cause of development of
the country and not on amassing wealth. To this effect, the growth of large independent business
groups was controlled...
Business Entrepreneurship
The protectionist policy proved to be an impediment in the growth of business entrepreneurship
in India. However, the entrepreneurial spirit remained alive in the country as governmental
policies could not have a great impact on some of the very large business groups such as the Tatas
and the Birlas. Several other business groups – Reliance Industries Limited being the most
prominent amongst them – were also able to establish themselves despite the regulatory regime
of the government...
The Business Model and the Business Sense
ROPE focused on leveraging local resources and honing artisanal skills. The company formed
producer groups, which supplied unique artisanal products to large organisations. To achieve the
same, the company selected its business centers based on the raw material availability of the
region. For instance, the company identified a region named Bhavani in Tamil Nadu (a southern
state in India), predominantly comprising of handloom weavers, as a prospective centre for its
business...
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