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8/7/2019 Emerging Enterprenuership Trends

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MANAGEMENT-3600Term paper

On

EMERGING

ENTREPRNUERSHIP TRENDS

IN INDIA

Vignana Jyothi Institute of Management

SUBMITTED BY:

SHALINI: 10343

SHIVA: 10344

SOUJANYA: 10345SUDIP: 10346

DEEPIKA: 10347VIKRAM REDDY V: 10348


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Contents

Abstract ................................................................................................................................................... 4

Introduction ............................................................................................................................................ 5

Emerging themes in entrepreneurship research....................................................................................... 6

Emerging trends in Indian Entrepreneurship ......................... ................................ ...................... ............. 7

Tourism and Hospitality ....................................................................................................................... 7

Auto Ancillaries .................................................................................................................................... 7

Two Wheelers ............................. ........................ ................................ ....................... .......................... 7

Garments ............................................................................................................................................. 8

Software .............................................................................................................................................. 8

Light and Medium Engineering Industry ............................ ................................ ...................... ............. 8

Trading/Supplies .................................................................................................................................. 8

Education and Training ........................................................................................................................ 9

Poultry ................................................................................................................................................. 9

Food Processing ................................................................................................................................... 9

Fruit and Vegetable Processing ............................................................................................................ 9

Manufacture of Business Attires ........................................................................................................ 10

Corporate Gifting ............................................................................................................................... 10

Herbal Medicines and Skincare Products ........................... ................................ ...................... ........... 10

Mineral Water ................................................................................................................................... 11

Paints, Enamels and Varnishes ........................................................................................................... 11

Organic Farming ................................................................................................................................ 11

Music and Entertainment................................................................................................................... 12

Writing Instruments ........................................................................................................................... 12

Plastics............................................................................................................................................... 12

Toys ................................................................................................................................................... 12

Floriculture ........................................................................................................................................ 13

Health-care Sector ............................................................................................................................. 13

Biotechnology .................................................................................................................................... 13

Information Technology (IT) Enabled Services .................................................. ....................... ........... 13

Education Portals ............................................................................................................................... 14

Organized Retailing ............................................................................................................................ 14


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Processing, Refrigeration and Transportation of Food, Vegetables and Fruits....... .......................... .... 14

Cruising Business ............................................................................................................................... 15

Courier Services ................................................................................................................................. 15

Summer Solution Related Business Opportunities ............................ ........................... ....................... 16

Efforts in India to Promote Entrepreneurship ........................................................................................ 16

Conclusion ............................................................................................................................................. 17

Bibliography: ......................................................................................................................................... 18


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Abstract

Entrepreneurship is a dynamic process of vision, change, and creation. It requires an

application of energy and passion towards the creation and implementation of new ideas and

creative solutions. Essential ingredients include the willingness to take calculated risks in terms

of time, equity, or career; the ability to formulate an effective venture team; the creative skill to

Marshall needed resources; and fundamental skill of building solid business plan; and finally, the

vision to recognize opportunity where others see chaos, contradiction, and confusion. Desirable

rate of economic growth calls for rapid emergence of a multitude of enterprises in all walks of

life. This requires the creation and maintenance of an environment that is conducive to growth of

existing enterprises and would help build up a wider base of population capable of successful

entrepreneurial behavior.

Given the increasing significance and visible impact of Entrepreneurship in wealth-

creation and employment-generation, it is critical to Indias growth and development. It has

undertaken this study to explore factors that have advanced Entrepreneurship in India and

emerging trends in entrepreneurship in various areas.


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Introduction

Entrepreneurship is more than the mere creation of business. Although that is certainly as

important facet, its not the complete picture. The characteristics of seeking opportunities, taking

risks beyond security, and having the tenacity to push an idea through to reality combine into a

special perspective that permeates entrepreneurs. An entrepreneurial perspective can be

developed in individuals. This perspective can be exhibited inside or outside an organization, in

profit or not-for-profit enterprises, and in business or non-business activities for the purpose of

bringing forth creative ideas. Thus, entrepreneurship is an integrated concept that permeates an

individuals business in an innovative manner. It is this perspective that has revolutionized the

way business is conducted at every level and in every country. The revolution has begun in an

economic sense, and the entrepreneurial perspective is the dominant force! Desirable rate ofeconomic growth calls for rapid emergence of a multitude of enterprises in all walks of life. This

requires the creation and maintenance of an environment that is conducive to growth of existing

enterprises and would help build up a wider base of population capable of successful

entrepreneurial behavior. Driven by supportive government policies, maturing clean technologies

and growing investor appetite, India is fast becoming a hub for entrepreneurs.


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Emerging themes in entrepreneurship research

The major themes that characterize recent research about entrepreneurs and new-venture

creation can be summarized as follows:

1. The entrepreneurial and managerial domains are not mutually exclusive but overlap to a

certain extent. The former is more opportunity-driven, and the latter is more resource and

conversation driven.

2. Venture capital and other innovative financing techniques emerged in the India with

unprecedented strength, fueling the entrepreneurship.

3. Intrapreneurship (corporate entrepreneurship) and the need for entrepreneurial cultures have

gained much attention during the past few years.

4. Entrepreneurial strategies have been identified that show some important common

denominators, issues, and trade-offs between entrepreneurship and strategy.

5. The great variety among types of entrepreneurs and the methods they have used to achieve

success have motivated research on the psychological aspects that can predict future success.

6. The risks and trade-offs of an entrepreneurial career, particularly its demanding and stressful

nature has been subject of keen research interest relevant to would-be and practicing

entrepreneurs alike.

7. Women entrepreneurs have emerged in countable numbers. They appear to face obstacles and

difficulties different from those that other entrepreneurs face.

8. The entrepreneurial spirit is universal, judging by the enormous growth of interest in

entrepreneurship around the world in the past few years.

9. The economic and social contributions of entrepreneurs, new companies, and family

businesses have been shown to make immensely disproportionate contributions to job.

10. Entrepreneurial education has become one of the hottest topics at Indian business and

business schools. Additionally, a number of major academic institutions have developed

programs in entrepreneurial research.


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Emerging trends in Indian Entrepreneurship

It is high time out entrepreneurs realize the importance of being choosy in project

identification. Till recently, we in India kept on exploring the possibilities of manufacturing

almost everything, right from pins to planes and screws to sub-marines. Just as companies and

individuals carry out SWOT analysis for identifying business opportunities for our entrepreneurs.

The completing demands for our limited and meager resources are many and unless we apply a

degree of selectivity in our approach in resource allocation, we will continue to be a nation of

foundation stones.

Tourism and Hospitality

India is a country of many countries. Our diverse culture, religions, languages, rich

heritage and vast geographical area make the country a place of tourist attraction. Hills and

beaches, temples and palaces, the deserts and the jungles are all these. There are not many

countries in the world where you can surf the sand and the sea. Privatization of airports and

aviation sector could further give boost to tourism industry. Tourism should therefore receive

topmost priority.

Auto Ancillaries

India may not be the best car-manufacturing base, but we can certainly be the best

ancillaries to the automobile industry world over. Our entrepreneurs are capable to developing

global scale auto ancillaries. By all means, we should also continue car manufacturing, but we

must do it at a scale and quality at which the world community takes us seriously.

Two Wheelers

As a nation we have excelled in production of two wheelers be they cycles, scooters or

motorcycles. We have the technology, the skills, and most of all, the critical mass to affect a

breakthrough. We should aim at capturing the worlds two-wheelers markets.


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Garments

India has the potential of becoming a leading supplier of garments, apparels, silk, hosiery

and textiles. Indian textiles are well known world over. Our Ludhiana and Tirupur entrepreneurs

have done proud to the country in the area of woolen and cotton industry. By understanding

customer needs through extensive and systematic market research we can capture more markets

world over.

Software

India has already made a strong dent in worlds software market. For us the most natural

thing is to be number one software and consultancy services suppliers. Our country has the right

resources in the form of vast population of educated youth. Other developed and developingcountries with vast resources can perhaps continue making advances in manufacturing of

computers, computer hardware and computer chips year after year. Software exports from India

are growing more than 50 per cent per annum.

Light and MediumEngineering Industry

Many countries of the world are far ahead of India in manufacturing aircraft, ship and

products of similar nature. Unfortunately, we in India try to manufacture everything and finally

end up doing nothing well. Our strength lies in the light and medium engineering industry. We

are in a position to provide a leading edge in this industry. India also has the capability of

becoming worlds best foundry products maker. We should concentrate more areas where we

have an edge rather than thinly spreading our limited resources and expertise in areas like

manufacture of aircraft and flexible machine systems.

Trading/Supplies

Among Indias vast population there are communities like Marwaris, Punjabis, Gujaratis,

Tamilians, etc., with acumen for trading and acting as suppliers. It is, therefore, logical on part of

such communities to become global players in trading and operate at international levels. By

doing so we will be doing something that we are good at.


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Education and Training

India has some of the worlds best universities and educational institutes, i.e., IIMS, IITS,

IISc, etc. The cost of education and training in India is nominal in comparison to developed

countries. There is vast reservoir of talented people in the country. By pooling resources and

networking with resource organizations we can create education and training facilities not only

for Indians but also for scholars from abroad. Indian educational institutions, both government

and privately managed, have the capacity and expertise to offer affordable education to persons

from other countries.

Poultry

India holds lot of potential for developing its poultry and poultry based industries. Avast population and export potential make this industry a lucrative activity for those who want to

be in poultry allied industry.

Food Processing

India has emerged as one of the topmost food producing countries in the world. Indian

climate is suitable for growing vast varieties of food grain. At present, most of the food grain is

sold in raw form. In food habits the world over is undergoing change. As a matter of

convenience, people, especially youngsters, prefer fast food or ready to eat food. Indian food is

well known world over. We need to exploit this potential by processing our food grains.

Processed food will have good market in India as well as abroad. Food processing would also

help us earn must-needed foreign exchange.

Fruit and Vegetable Processing

Fruit and vegetables are grown in plenty in India. The country has emerged as a leading

producer of fruit and vegetables. Because of poor transportation facilities, inefficient

infrastructure, bumper crops and lack of marketing facilities, many a time, lots of vegetables and

fruit simply go waste. We need to create fruit and vegetable processing facilities all over the

country so as to harness the potential for their production. Fruit and vegetable processing offers

potential for high value addition and potential entrepreneurs can earn a lot from such products.


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By processing of fruit and vegetables, our producers will get proper price for their products,

entrepreneurs will have good business opportunities, masses will get employment and export of

processed fruit and vegetables will increase. While processing fruit and vegetables, our

entrepreneurs need to take all possible care so as to ensure quality and standard of their products.

Manufacture of Business Attires

Manufacture of business attires, especially for Indian women, is going to be a rewarding

business in days to come. Womens participation in white-collar jobs is on the increase. With the

influx of multinational companies in India, workplace outlook and environment are improving.

Well managed companies, whether MNCs or of Indian origin, expect their employees to look

smart and dress well. Some of the organizations also prescribe a dress code. Increasing presence

of women in various workplaces has given a boost to business attire market. Till recently,

business attires, especially for women used to originate from developed countries and women

used to pay hefty price for such dresses. The growing business attire market offers good business

opportunities in this sector. Our potential entrepreneurs can think of getting into this business

both for Indian and overseas clients.

Corporate Gifting

Corporate gifting has picked up in India in the recent years. Indian companies and

business organizations spend crores of rupees on giving gifts to their employees, shareholders

and business associates on occasions like Diwali, New Year and Annual General Meetings. As

per rough estimates, corporate India spends approximately Rs.1000 crore every year on corporate

gifting and the culture is on the rise. Potential entrepreneurs, especially those good in public

relations, can easily get into such business. Other associated businesses in this line could be

manufacture of greeting cards (Diwali, New Year, Christmas, Valentine day, Birthday, etc.) for

various occasions.

Herbal Medicines and Skincare Products

India has the distinction of growing vast variety of herbs. Indian population of more than

a billion ensures a sufficiently large market for herbal medicines and skincare products. People,

world over, in general and in developed countries, in particular, are becoming increasingly aware


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of after-effects of allopathic medicines and synthetic skincare products. Women, in particular,

are slowly switching over from synthetic skincare products to herbal-based products. India has

an established tradition of growing and using variety of herbs. We need to go in for

commercialization of herbal-based medicines and skincare products in a big way.

Mineral Water

Even though mineral water manufacturing was started in India during the 1960s, but the

market did not pick up till 1985. During late 1980s and 1990s mineral water market in India

increased by an impressive rate of 30-40 per cent annum. Market for mineral water in India is

spreading very fast. People are becoming health conscious. We are going to enter in an era when

potable bottled water would find place in almost all general stores and it will become an

unavoidable expenditure for people at large. Statistics reveal that size of Indian Mineral water

market during 1999 was of the order of approximately Rs.800 crore. Many small-scale

entrepreneurs can find business opportunities in this fast growing market.

Paints, Enamels and Varnishes

India is presently experiencing an automobile revolution. Standard of living of the

sizeable Indian middle class is also improving at a rapid pace. Both these trends indicate an

increasing market for paints, enamels and varnishing. Industrial and household use of these

products is quite promising and much better than many other products. Manufacture of these

products in small-scale sector should therefore need to be considered as a viable business

proposition.

Organic Farming

The concept of organic farming is of very recent origin in India, Many developed

countries grow food organically. Health conscious persons prefer organically grown food. InIndia also, people are becoming increasingly health conscious. They are well aware of after

effects of food and vegetables, which are grown by making excessive use of chemical fertilizers,

pesticides and insecticides. Some companies and individual farmers have started organic farming

in India. To ensure better health for our people we need to promote organic farming in a big way.


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Our potential entrepreneurs with interest in agricultural related activities would perhaps find

good business opportunities in this area.

Music and Entertainment

Music and entertainment are required the world over. With a large number of channels in

operation and a revolution in satellite technology the music and entertainment industry has

thrown open numerous opportunities. Potential entrepreneurs should grab opportunities in the

fast developing music and entertainment industry.

Writing Instruments

Literacy rate in India is slowly improving. Some of the conventional writing and learning

materials are fast becoming obsolete. Also because of economies of scale and cheap labor

availability, we as a nation are in a position to manufacture writing instruments at affordable

prices. Now with access to better technologies and huge Indian and overseas markets, our

entrepreneurs have an opportunity to exploit this market.

Plastics

Per capita consumption of plastics in India is hardly 2-5 per cent of per capita

consumption in developed countries like the US. Use of plastics in India, both in Industries and

households, is going to pick up in coming years. In spite of ill effects of use of plastics, it is

rather impossible to manage without it. The Indian plastic market is presently experiencing a

growth rate of more than 10 per cent per annum. It provides scope for setting up small-scale

plastic processing enterprises for manufacture of variety of plastic products.

Toys

Toy manufacturing (especially stuffed toys) is a low technology based less capital

intensive and highly labor intensive industry. Superstores abroad usually source toys from China,

Korea and Hong Kong. Consumption of toys in India and abroad is increasing. In India, the toy

market grew 10-12 per cent per annum during the late 1990s. It is estimated to touch an annual

growth rate of 15 per cent soon. India has potential to manufacture cost effective toys largely for


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Indian market and also for world toy market. If China and Korea can do it why cannot we? Our

entrepreneurs need to consider toy manufacturing as a rewarding business.

Floriculture

Indian flowers are becoming increasingly popular in the world market. Flower market,

especially exports, is becoming favorable to Indian florists. Improvements in infrastructure and

transport facilities would further brighten the prospects of Indian flowers abroad. At the same

time, florists need to concentrate on domestic flower market as well.

Health-care Sector

Indias population to hospital bed ratio is a very poor compared to World Health

Organizations standards. (Indias population to hospital bed ratio is 1300: 1 against the WHO

recommended ratio of 250: 1). With the funds receding in government kitty, private sector will

be required to play major role in the health-care sector. Health-care, both in corporatized sector

(Organized sector) and also in informal sector, has potential for high growth in India.

Biotechnology

It is believed that early twenty-first century will belong to biotechnology and software in

India. In India biotechnology has just started picking up. Application of biotechnology especially

in the areas of agriculture, horticulture, sericulture, poultry, dairy and production of fruit and

vegetables will pay an important role in future. We should go for commercial application of

biotechnology in various sectors of economy wherever it is found feasible. Biotechnology would

therefore throw open many opportunities for entrepreneurs in future.

Information Technology (IT)Enabled Services

Business to Business Portal Solution (B2BPS) Services would be needed in a big way to

address the emerging needs of IT enabled services sector. IT enabled services is a US$ 180

billion business. The sector includes services like GIS digitization, medical and legal

transcription, medical billion, and insurance claim processing and archival and indexing of

records. All these, and many more services, could be provided by Indian entrepreneurs. The pool


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of smaller service providers from India can meet the needs of outsourcing from US, and other

developed countries.

Education Portals

Application of information technology to education sector has started revolutionizing the

process of education in the country. MNCs and Indian Internet companies have started setting up

education portals in the country. In days to come professional education like management,

medicines, engineering, law etc., would be taught by making extensive use of internet. Under the

new innovative and emerging concept students would study and learn educational courses both at

school and college level online, i.e., through internet. Some companies have already set up their

web-sites, which offer various courses for school level students. IT-friendly potential

entrepreneurs can look forward to getting franchise of major players in providing IT based

educational courses.

Organized Retailing

The organized retail industry business in India is expected to grow between 50-60 per

cent each year during the next few years. Given that there is beginning to be some comb lance of

competition among organized retailers in the big cities. Retailing as a business, till recently, was

confined to small-scale shopkeepers but now even large business houses have started considering

it a potential opportunity. Venture capital and bank finance is also now available for prospective

retailers. Experts in retail industry feel that retail business is truly globalization, and common

patterns are emerging. Electronic retailing is yet another emerging area. Electronic retailing is

happening more in business to business space than in the business to consumer space.

Processing, Refrigeration and Transportation of Food, Vegetables and Fruits

India has long suffered the lack of a comprehensive cold chain. A large Purdon ofagricultural and other products produced in the country perish due to the lack of a serviceable

refrigerated storage and distribution network. A detailed study conducted by the government on

the agricultural and food industry has revealed that one-third of the products are ruined due to the

lack of adequate storage and preservation facilities. Meat, poultry, fresh produce and dairy can

only be distributed within limited geography and need to be consumed in a short period. Also,


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sensitive medical requisition like vaccine and pharmaceuticals are suffering due to the lack of

refrigerated distribution. This state of affairs needs to be changed. Food and other precious

resources in our country must be preserved at all costs. The refrigeration industry would be

required to come through providing a wide range of industrial and commercial refrigeration

services that can serve the entire gamut of cold storage and refrigerated transport to retail display

and preservation units.

Cruising Business

The cruising business is gradually picking up in India. The business of cruising represents

enjoying the luxury of dining in fine restaurants, casinos, excursions to golden beaches and

exotic islands. The perception of Indians about cruising business is changing. People no more

consider cruising as meant for elderly and retirees alone. The concept of a cruise holiday is

becoming immensely popular in India. The number of Indians holidaying on cruising trips in

increasing due to enhanced awareness through better marketing and advertising by our operators,

fatter pay packets, and a growing tendency to splurge.

Courier Services

E-commerce related business is poised for exponential growth in the early 21st century.

Expansion of E-commerce in India and world over has given a boost to courier business. The

service industry is expected to grow in leaps and bounds in the near future for the simple reason

that physical delivery of goods will be primarily handled by courier services companies.

Corporate in Net business will not be in a position to support a massive network of distribution,

whose job in future will be reduced to just delivering the goods manufactured from the

manufacturers doorsteps to the consumers. Besides maintaining a large network of distributors

is expensive when even the big wigs in the industry are cutting costs. Due to these difficulties

courier companies with an elaborate network would have enough business to transact. Their

network is going to be particularly beneficial to Fast Moving Consumer Goods (FMCG)

companies who, at present, depend on a network of sales persons to make their product reach the

retail levels. If recent trends serve any indication, courier services, both in organized and

unorganized sectors ensure a promising future.


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Summer Solution Related Business Opportunities

Summer and power cuts are synonymous in India. With the advent of technology

solutions to frequent power cuts are immense. And for the times when power is regular life can

be bliss with a variety of cooling devices in the form of high tech air conditioner and coolers.

With latest state of the art technology being imbibed in these gadgets, healthy air and healthy

food are a de rigueur in todays AC and refrigerators. Silent invertors and one-pull generators are

another lot becoming an essential buys for almost every household. Depending on the demand a

variety of invertors and generators can be manufactured by small-scale entrepreneurs. Servo

voltage stabilizers online UPS, line interactive UPS, automatic voltage stabilizers, constant

voltage transformers, manual voltage regulators, isolation transformers, high voltage regulators,

high voltage break down testers, electronic air conditioner protectors, spike suppressors and

busters are the other products related to summer solutions which can easily be manufactured in

small scale units.

Efforts in India to Promote Entrepreneurship

The Indian experience suggests that difficulties in starting up businesses and handling the

pressures of entrepreneurship in the initial phases deter people from taking up entrepreneurship

as means for livelihood. The grant of licenses and policies and controls and taxations had been

cited as one of the major hurdles in the setting up and running of new businesses (Awasthi &

Sebastian, 1996; Gautam, 1979; Mokry, 1988; Sadhak, 1989; Singh, 1985). Thus,

entrepreneurship had been encouraged in India by systematic attempts at removal of state

imposed structural and regulatory roadblocks. More progressive governments had tried to make

it easy for entrepreneurs to set up businesses. The growth of Bangalore, Hyderabad as hubs for

organizations engaged in Information Technology business were direct outcomes of

governments support in form of tax holidays to start-ups and sector-region specific concessions

to start new ventures.

Second, there were attempts to make finances available to businesses. In the existing

banking paradigm it was/is not so easy to get loans for starting new ventures or expanding

current businesses. The Reserve Bank of India urged banks to consider easier lending to small


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and new businesses ("Banking not equipped to promote SMEs: RBI," 2002). The Government of

India also increased efforts in this direction. Small Enterprise Development Bill of 2003 included

guidelines for banks and other government agencies to ensure easy disbursement of loans to new

ventures (Gopalakrishnan, 2004). Subsequently, lowering of borrowing rates from the banks also

made it worth the while of entrepreneurs to run profitable business. These steps were/are being

taken in the direction of making easy finance available to entrepreneurs.

Another form of support and development of entrepreneurial talent by various institutions

came in the form of setting up training institutions for entrepreneurs. Setting up of national

institutions such as the Entrepreneurship Development Institute at Ahmadabad is indicative of

such thinking at the government level in India. Several institutions in the US, Singapore, the UK,

and India set up special cells to support technopreneurs and other innovators. These institutionsprovide basic management know how and understanding of how to start and run a business, and

also incubate new businesses till they are able to sustain themselves.

Conclusion

India has made substantive progress in putting together various regulatory mechanisms in

different sectors and has received benefits from these reforms which are giving birth to new

entrepreneurs. We have specific policies and programs in place to encourage people to become

entrepreneurs. In the market there are lots of opportunities in different areas and financial

resources like venture capital are inviting innovative ideas. There requires the creation and

maintenance of an environment that is conducive to growth of existing enterprises and would

help build up a wider base of population capable of successful entrepreneurial behavior.


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Bibliography:

Websites

1. www.emerald.com2. www.google.co.in3. www.Wikipedia.com4. www.answers.yahoo.com