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The IUP Journal of Entrepreneurship Development

March '12
Focus

Microenterprises possess tremendous potential for creating employment opportunities and wealth in a country like India. However, they face huge challenges in the areas of access to financial resources and in marketing their products.

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Information Technology Adoption in Small Family Businesses for Developing Economies
Female Entrepreneurship Within the Experience Industry: A Case Study of Two Swedish Regions
Financial Management Practices of Micro Handloom Enterprises: A Case Study of Thenzawl Cluster in Mizoram
Rural Women Entrepreneurs in the Informal Sector of India
A Study on the Growth and Performance of Selected Women Entrepreneurs in Coimbatore District, Tamil Nadu
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Information Technology Adoption in Small Family Businesses for Developing Economies

-- Bijay K Kandel and Jyotiranjan Hota

A gap has always existed between affluent countries with access to modern Information Technology (IT) adopted in areas of business management and less technologically developed countries living with more outdated technologies used in business and management areas. Although it is commonly acknowledged that IT adoption in organization makes a significant contribution to the economic and social progress of a country, it is surprising that the activities of such businesses in developing countries have not received greater scrutiny, particularly in South Asia. This paper describes the adoption process of IT within Small Family Businesses (SFBs), especially in South Asia. In addition, it examines the factors relevant to SFBs managers, owners and staff.

Female Entrepreneurship Within the Experience Industry: A Case Study of Two Swedish Regions

-- Saeid Abbasian and Carina Hellgren

This paper investigates female entrepreneurship within experience industries in two Swedish municipalities, Degerfors and Gotland. Nine businesswomen and eight practitioners have been interviewed. The women go into business as a result of their eagerness to experience the process of running a business by them. They come armed with concepts and ideas they wish to develop in the form of an experience-oriented business, or through which they search for new meaning or pursue a new lifestyle. The obstacles and opportunities that the women encounter in the two investigated regions have much to do with the different business climates and also, to a certain degree, their natural preconditions. This in turn affects local labor markets and the chances women have of obtaining gainful employment. The general business climate in Gotland is much better than in Degerfors, and women in Gotland have access to numerous organizations, associations and societies.

Financial Management Practices of Micro Handloom Enterprises: A Case Study of Thenzawl Cluster in Mizoram

-- Rama Ramswamy

The handloom sector in India is important from the point of view of its size and employment potential. Moreover, the sector provides employment to the most vulnerable sections of the Indian population, viz., women, Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Castes (OBCs). Out of the 27.83 lakh handloom households engaged in weaving and allied activities across the country, 10% handloom households belong to SCs, 22% to STs and 41% to OBCs. Nearly, 77% of the handloom workforce comprises women and most of these women are located in rural areas. The North East (NE) states of India have the largest concentration of handlooms in the country (more than 65% of the total looms). However, a large majority of the looms (62%) are engaged in domestic production only. This paper attempts to understand the financial management practices of micro handloom enterprises predominantly run by women in a remote tribal cluster, Thenzawl in Mizoram. The paper identifies the sources of fixed capital and working capital for the enterprises and the problems faced by them related to finance.

Rural Women Entrepreneurs in the Informal Sector of India

-- G H Barhate and Madhavi S Patgaonkar

Informal economy has a significant role in entrepreneurship, particularly, women entrepreneurs of rural area. It has great impact on employment and income generation. Normally, the sector, which is not organized, not recorded by public authorities and which has no identity, is considered to be a part of informal sector. The informal sector is defined as those establishments that employ less than 10 persons with or without use of power. The formal sector includes manufacturing, trade and services, while the informal sector includes businesses that have small size of operation and low investment, so entry is easy compared to the formal sector. On the other hand, women-owned businesses have drawn significant attention around the world. It is observed that women start business for several reasons like financial support, earning livelihood for the family, independence, etc. The size of the business owned by women in informal sector is usually small and operated from their own residence. With successful business performance, most of the women want to remain in the business. But women do not receive enough support from their family as well as government authorities. These entrepreneurs must be involved in modern small-scale units. If they are properly trained and provided with the required capital, then rural India and informal sector will emerge as a story of success.

A Study on the Growth and Performance of Selected Women Entrepreneurs in Coimbatore District, Tamil Nadu

-- Sherly Thomas and V L Lavanya

With industrialization, urbanization and a change in the educational pattern, the Indian society is gradually undergoing progress, and increasing number of women are coming forward, apart from seeking employment of challenging nature, to take up self-enterprise. These days, many women entrepreneurs either by their own interest or in order to earn a living and to support their family, have come forward to take up challenging opportunities like entrepreneurship. Despite the problems relating to managerial and financial aspects, lack of cooperation from the family and a host of other problems that women entrepreneurs face in their journey on this path, they still dare to take up this challenging job in the present era, thanks to the initiating and enterprising nature of the women. Against this backdrop, an attempt is made in the present study to evaluate the growth and performance of selected women entrepreneurs in Coimbatore District of Tamil Nadu, India.

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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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