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4 Entrepreneur Success Stories to Learn From

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  • 20 Jan 2022

Entrepreneurship is a risky but potentially rewarding endeavor. According to the online course Entrepreneurship Essentials , 50 percent of startups last five years, and just 25 percent survive 15.

“For every Amazon.com or Uber, there are scores of companies few can remember,” says Harvard Business School Professor William Sahlman in Entrepreneurship Essentials.

So, what separates successful ventures from those that fail?

“When a company succeeds, it’s because it has discovered and made the right moves along the way,” Sahlman says. “It has found out how to create and capture customer value.”

If you’re exploring entrepreneurship or in the early stages of launching a venture, it’s important to learn from others to avoid common pitfalls and discover which decisions impacted a company’s survival. Here are four stories of successful entrepreneurs to inspire your entrepreneurial journey.

Access your free e-book today.

4 Successful Entrepreneur Stories

1. adi dassler of adidas.

Some of today’s biggest brands started with humble beginnings, and no one embodies this better than Adidas founder Adolf “Adi” Dassler.

Dassler’s shoemaking career began in his mother’s washroom in a small town in Bavaria, Germany. It was there that Dassler began designing and cobbling shoes and decided he wanted to make the best possible sports shoe for athletes.

While there were plenty of shoemakers at the time, Dassler was committed to standing out in the market by gathering feedback from athletes about what they looked for in a shoe, what pain points could be improved on, and how they felt about his early models.

This feedback allowed Dassler to craft an athletic shoe that was highly valued by his customers and gave him legitimacy when he registered “Adi Dassler Adidas Sportschuhfabrik” in 1949 at 49 years old. It was that same year the first shoe with the soon-to-become-signature Adidas three stripes was registered.

Dassler’s vision to create the best shoe for athletes proved itself in 1954 when the German national football team won the World Cup final against the Hungarians—while wearing the new model of Adidas cleats.

“Their unbelievable victory would be heard around the world for decades to come,” Adidas states on its website , “and it made Adidas and its founder a household name on football pitches everywhere.”

Since then, Adidas has grown into an international brand known for high-quality athleticwear. Dassler’s story sheds light on the importance of listening to target customers about their dreams, needs, and pain points.

“Adi Dassler’s secret to success had an additional personal ingredient: He met with athletes, listened carefully to what they said, and constantly observed what can be improved or even invented to support their needs,” reads Adidas’s website . “The best of the best trusted Adidas and its founder from the beginning.”

Related: 5 Steps to Validate Your Business Idea

2. Whitney Wolfe Herd of Bumble

After leaving dating app company Tinder and an abusive relationship in 2014, Whitney Wolfe Herd was inspired to create an empowering dating experience for women.

“For all the advances women had been making in workplaces and corridors of power, the gender dynamics of dating and romance still seemed so outdated,” Wolfe Herd writes on Bumble’s website . “I thought, ‘What if I could flip that on its head? What if women made the first move and sent the first message?’”

Wolfe Herd, along with dating app Badoo co-founder Andrey Andreev and former Tinder employees Chris Gulzcynski and Sarah Mick, designed a dating app that requires women to make the first move in heterosexual matches.

The brand took off—largely on college campuses—and the app reached 100,000 downloads in its first month.

As its user base grows, Wolfe Herd remains a strong advocate for gender equality and sexual harassment prevention, building in-app features that block hate speech and blur inappropriate images. Wolfe Herd and her team also lobbied the state of Texas—where the company is headquartered—to pass a law prohibiting the sending of unsolicited lewd photos, which passed in 2019 .

“I’m more dedicated than ever to helping advance gender equality—and putting an end to the misogyny that still plagues society,” Wolfe Herd writes in a letter to Bumble users . She later adds, “I want nothing more than for your connections to be both meaningful and healthy.”

Wolfe Herd’s story serves as a reminder to use your own life for business inspiration and use a cause you care about to differentiate your product and brand in a saturated market.

Related: How to Identify an Underserved Need in the Market

3. Melanie Perkins of Canva

In 2007, Melanie Perkins was working a part-time job while studying in Perth, Australia, teaching students how to use desktop design software. The software was expensive, complex, and required a semester’s worth of instruction to learn how to use, prompting Perkins to ask, “Is there a way this could be simpler and less expensive?”

Perkins’s goal to create an affordable, simple, online design tool was originally turned down by over 100 investors—it wasn’t until three years into her pitching process that Canva received its first investment.

Perkins credits this investment to a shift in her pitching strategy: She began leading with the relatable problem Canva aims to solve.

“A lot of people can relate to going into something like Photoshop and being completely overwhelmed," Perkins said in an interview for Inc . "It's important to tell the story, because if your audience doesn't understand the problem, they won't understand the solution."

Today, 60 million customers use Canva to create designs across 190 countries.

Perkins’s story reflects the importance of effectively communicating the value of a business idea , as well as the tenacity and resilience required for entrepreneurial success.

Related: How to Effectively Pitch a Business Idea

4. Neil Blumenthal, Dave Gilboa, Andy Hunt, and Jeff Raider of Warby Parker

One example mentioned in Entrepreneurship Essentials is that of innovative online eyewear company Warby Parker. In 2008, Wharton MBA student Blumenthal lost his prescription eyeglasses. He was reluctant to purchase a new pair because they were so expensive. He also didn’t want to visit an eyeglass store.

The idea came to him in the middle of the night, and he emailed three friends—Gilboa, Hunt, and Raider—immediately: Why not start an online company to sell prescription glasses at an affordable price?

They set to work, and Warby Parker was poised to launch just after the four founders graduated with their MBA degrees in the spring of 2010—that is, until GQ reached out to Blumenthal about writing an article to be published on February 15 of that year. The founders sped up their process and launched Warby Parker’s website the same day the article was printed .

The article called Warby Parker “the Netflix of eyewear,” driving interested customers to the new site in droves. The founders’ one mistake was forgetting to add a “sold out” functionality to the website. The waitlist for Warby Parker eyewear grew to 20,000 people, and the company hit its first-year sales target in three weeks.

"It was this moment of panic but also a great opportunity for us to provide awesome customer service and write personalized emails to apologize and explain," Blumenthal says in an interview for Inc . "That really set the tone for how we would run customer service."

A few things set Warby Parker apart from the eyewear market at the time:

  • Its online model : A new way of delivering the product helped it break into a stagnant industry
  • Its affordable prices : A pair of Warby Parker frames with prescription lenses cost $95—much less expensive than other brands at the time
  • Its home try-on program : This enabled customers to try on five pairs of glasses and send back the pairs they didn’t want to purchase.
  • Its commitment to giving back : For every pair of glasses purchased, Warby Parker donated a pair to someone in need

Warby Parker donated its millionth pair of glasses in 2019 and continues to be an example of innovation in an existing market.

Which HBS Online Entrepreneurship and Innovation Course is Right for You? | Download Your Free Flowchart

Why Learn from Case Studies?

Reading about the trials, tribulations, decisions, and successes of other entrepreneurs is an effective way to gain insight into what your experience could be like. What common threads do you notice in the aforementioned examples? What characteristics do these successful entrepreneurs share ? Use their experiences as blueprints to inform your strategic approach and in-the-moment decision-making.

When building your entrepreneurial skills, seek out courses that incorporate case studies into their teaching method , such as Entrepreneurship Essentials. Not only can you imagine yourself in their situations, but you can take their wisdom with you on your entrepreneurial journey.

Are you interested in honing your entrepreneurial skills and innovation toolkit? Explore our four-week Entrepreneurship Essentials course and other online entrepreneurship and innovation courses to learn to speak the language of the startup world.

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Case studies are usually short articles describing real-world business examples that illustrate a particular problem or principle in detail. There are many cases available online for free or for a fee, and you can also search the library catalogue and selected databases below.

Looking for something specific?

To use UTL Library Search to find books of entrepreneurship case studies, enter "Entrepreneurship case studies" in the search field and select "Subject" from the "Any field" dropdown menu.

Or search these databases to find individual cases in digital format (articles):

  • Business Source Premier This link opens in a new window Search for a company or topic and select "Case study" under "Document type."
  • CBCA Reference & Current Events This link opens in a new window Enter "entrepreneurship" or another topic of choice in the text field and check "Business case" under "Document type."

Entrepreneurship Cases

  • Arthur Andersen Case Studies in Business Ethics Ninety case studies from1987-94 produced by the Carnegie Mellon Tepper School of Business in cooperation with 525 institutions including University of Toronto. Free.
  • The Asian Business Case Centre - Nanyang Technical University A collection of cases in Chinese and English focusing on Asian management and business experience. Searchable by topic or company. Free.
  • BCIC Business Case Library (archived link) Cases focused on IT, energy, and tech companies in British Columbia. Produced by BC Innovation Council. Free.
  • Canadian Agri-Food Policy Institute Cases on 13 Canadian companies including Ferrero, Lassonde, Maple Leaf Foods and PepsiCo Canada, produced by the CAPI and sponsored by Export Development Canada. Free.
  • Case Centre - Free Cases A distributor of over 50,000 cases on a variety of business topics including entrepreneurship produced by various institutions. Some electronic and paper cases are free and others are sold for a fee, with free teaching materials.
  • CasePlace - Aspen Institute (archived link) Over 800 entrepreneurship cases focusing on "social, environmental and ethical issues in business." Archived link.
  • Harvard Business School Cases - Entrepreneurship Cases on e.g. Google Glass and Andreessen Horowitz from Harvard Business Publishing. Educators can register for free access to cases and teaching materials; others are charged a fee. Note: Some older Harvard cases are available via Business Source Premier.
  • Ivey Publishing - Entrepreneurship Cases Over 2,800 entrepreneurship cases out of the Ivey Business School at the University of Western Ontario. Teaching notes also available. Paywall.
  • MIT Legatum Center for Development and Entrepreneurship Via the Case Center. Legatum Center case studies illuminate the thought processes of entrepreneurs, the challenges they face, and the solutions they devise as they develop their businesses. These cases are available without charge to help teachers, students, and aspiring entrepreneurs.
  • MIT Sloan School of Management Entrepreneurship cases available for free, includes teaching notes. Educators are asked to register.
  • National Center for Case Study Teaching in Science Science cases written by science faculty primarily from the U.S. and Canada, produced by the University at Buffalo. Free.
  • Rotman Gender and the Economy Case studies The Institute for Gender and the Economy (GATE) at the Rotman School of Management promotes an understanding of gender inequalities and how they can be remedied – by people of all genders – in the world of business and, more broadly, in the economy. Case studies can be filtered using tags including for entrepreneurship, and include high-profile Canadian founder cases.
  • Stanford Graduate School of Business - Case Studies Select "Entrepreneurship" under "Narrow your results>Additional topics."
  • The Times 100 Case Studies UK cases produced by the Times, searchable by topic, company, industry, or edition. Free.

Journals of Case Studies

  • Business Case Journal
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Case studies are usually short articles describing real-world business examples that illustrate a particular problem or principle in detail. There are many cases available online for free or for a fee, and you can also search the library catalogue and selected databases below.

Looking for something specific?

Search C  LIO for entrepreneurship case studies, enter Entrepreneurship--Case studies in the search field and select "Subject" from the dropdown menu.

Search Business Source Complete for a company or topic and select "Case study" under "Document type."

  • Columbia Caseworks :  A selection of Columbia Entrepreneurship Cases
  • Case Centre :  A distributor of over 50,000 cases on a variety of business topics including entrepreneurship produced by various institutions. Some electronic and some paper cases are free and others are sold for a fee, with free teaching materials.
  • Harvard Business School Cases :  Educators can register for free access to cases and teaching materials; others are charged a fee. Narrow topic to "Entrepreneurship" to see relevant cases. Note: Some older Harvard Cases are available via Business Source Complete
  • MIT Sloan School of Management :   Entrepreneurship cases are available for free, including teaching notes. Educators are asked to register.
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When the CEO Dies, What Comes First: His Company or His Family? (HBR Case Study and Commentary)

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Turkey Badly Needs a Long-Term Plan for Syrian Refugees

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An Angel Investor with an Agenda (Commentary for HBR Case Study)

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Social Impact Investing Will Be the New Venture Capital

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JH Men's Apparel: Building a Brand in China

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PSI: Social Marketing Clean Water

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Teaching Old Companies New Tricks: The Challenge of Managing New Streams Within the Mainstream

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Entrepreneurship in the Digital Era

Case Studies, Approaches, and Tools for Ecosystems, Business Models, and Technologies

  • © 2023
  • Daniel Schallmo   ORCID: https://orcid.org/0000-0002-4221-001X 0 ,
  • Jens Pätzmann 1 ,
  • Thomas Clauß   ORCID: https://orcid.org/0000-0001-7799-6369 2

Neu-Ulm University of Applied Sciences, Neu-Ulm, Germany

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Witten/Herdecke University, Witten, Germany

  • Provides latest insights from researchers and practitioners on digital entrepreneurship
  • Considers environmental factors on entrepreneurship comprehensively
  • Includes perspectives from several industries

Part of the book series: Management for Professionals (MANAGPROF)

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About this book

Changes in the environment such as trends, drivers, and influencing factors affect entrepreneurship and intrapreneurship in several ways. The changes of the environmental factors in several dimensions such as political, economic, socio-cultural, technological, ecological, and legal. On the one hand, the environmental changes include risk for existing business models. On the other hand, they include opportunities for new business models, entrepreneurship, intrapreneurship, and new insights in marketing.

This book provides empirical and conceptual papers and studies that tackle the challenges and opportunities for entrepreneurship in the digital era. It offers professionals, managers, researchers, lecturers, and students from the fields of entrepreneurship, innovation management, and business development valuable insight into the topic of entrepreneurship in times of digitalization.

  • Digital Entrepreneurship
  • Entrepreneurial Ecosystem
  • Digital Transformation
  • Case Studies
  • Strategic Planning

Table of contents (10 chapters)

Front matter, clarifying the field of digital entrepreneurship: systematic literature review with bibliometric methods.

  • Antonia Schulz, Daniel Schallmo

Strategic Entrepreneurship in the Digital Era

  • Ralf T. Kreutzer

Digital Entrepreneurial Opportunities in a 4.0 World: A Roadmap for Data-Driven Entrepreneurs

  • Tal Berman, Daniel Schallmo, Christopher A. Williams

Entrepreneurial Dynamic Capabilities Along the Value Chain: Evaluation of Case Studies

  • Christoph Haag, Theresa Marie Wobbe

Self-Employed Entrepreneurs’ Digital Mindset

  • Claus Andreas Gram Foss Rosenstand, Thomas Duus Henriksen

Use of Corporate Venturing Tools in Manufacturing Industry: A Systematic Literature Review

  • Stephan Nebauer, Peter Schrader, Erwin Gross, Thomas Bauernhansl

Logo Creation with Archetypes: Using Archetypical Shapes to Design Brand-Compliant Logos for Start-Ups

  • Sophie Steinecke, Jens U. Pätzmann

Archetypes and Colours: Findings of a Quantitative Study and Their Relevance for Start-Up Brands

  • Jens U. Pätzmann, Claudius Kübler

Classification of Born-Global Firms: The Case of Japanese High-Tech Startups

  • Saki Otomo, Shuichi Ishida, Mariko Yang-Yoshihara

Supporting Lean Startup Methodology in Three Finnish Micro-Sized Enterprises

  • Sami Jantunen, Helena Merikoski, Timo Partala, Niina Rantakari, Teija Rautiainen

Editors and Affiliations

Daniel Schallmo, Jens Pätzmann

Thomas Clauß

About the editors

Daniel Schallmo is Full Professor and Director of the Institute for Entrepreneurship at Neu-Ulm University of Applied Sciences in Germany. In the context of digitization, his work and research focuses on business model innovation, entrepreneurship, measuring digital maturity, developing digital strategies, the digital transformation of business models, and implementing digital initiatives.

Jens Pätzmann is Full Professor and Director of the Institute for Entrepreneurship at Neu-Ulm University of Applied Sciences in Germany. He teaches marketing, branding, and strategy for startups and conducts research in the field of social psychology and cultural anthropology in connection to archetypes and branding.

Thomas Clauß is Full Professor and Chair in Corporate Entrepreneurship and Digitalization in Family Business at the Witten/Herdecke University in Germany. He researches business model innovation, interorganizational governance, and digitization in family firms

Bibliographic Information

Book Title : Entrepreneurship in the Digital Era

Book Subtitle : Case Studies, Approaches, and Tools for Ecosystems, Business Models, and Technologies

Editors : Daniel Schallmo, Jens Pätzmann, Thomas Clauß

Series Title : Management for Professionals

DOI : https://doi.org/10.1007/978-3-031-43188-3

Publisher : Springer Cham

eBook Packages : Business and Management , Business and Management (R0)

Copyright Information : The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023

Hardcover ISBN : 978-3-031-43187-6 Published: 17 November 2023

Softcover ISBN : 978-3-031-43190-6 Due: 30 November 2024

eBook ISBN : 978-3-031-43188-3 Published: 16 November 2023

Series ISSN : 2192-8096

Series E-ISSN : 2192-810X

Edition Number : 1

Number of Pages : XI, 208

Number of Illustrations : 63 b/w illustrations

Topics : Entrepreneurship , IT in Business , Industrial Organization

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Case Studies and Successful Entrepreneurial Ventures

Introduction to case studies in entrepreneurship.

Studying case studies of successful entrepreneurial ventures can provide valuable insights into the strategies, challenges, and lessons learned by real-world entrepreneurs. By examining these examples, aspiring entrepreneurs can gain a better understanding of what it takes to launch and grow a successful business.

Key Elements of Entrepreneurial Success

Identifying Market Opportunities : Successful entrepreneurs are skilled at identifying unmet needs or problems in the market and developing innovative solutions to address them.

Developing a Strong Business Model : A well-designed business model that clearly articulates the value proposition, target customers, revenue streams, and cost structure is essential for entrepreneurial success.

Building a Talented Team : Entrepreneurs who surround themselves with skilled, passionate, and complementary team members are better equipped to navigate the challenges of starting and growing a business.

Adapting to Change : Successful entrepreneurs are agile and able to pivot their strategies in response to changing market conditions, customer needs, or competitive landscapes.

Perseverance and Resilience : Entrepreneurship is often characterized by setbacks and failures. Successful entrepreneurs demonstrate perseverance and resilience in the face of adversity, learning from their mistakes and continuing to pursue their vision.

Case Study 1: Airbnb

Airbnb, founded by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk in 2008, revolutionized the travel and hospitality industry by creating a platform that connects travelers with local hosts offering unique accommodations.

Key Lessons :

  • Identifying a market need: Airbnb recognized the demand for affordable, unique travel experiences and created a platform to address this need.
  • Leveraging technology: By developing a user-friendly platform that simplifies the booking process and facilitates trust between hosts and guests, Airbnb was able to scale rapidly.
  • Building a strong brand: Airbnb's emphasis on authentic, local experiences and its "Belong Anywhere" motto helped create a strong brand identity and loyal customer base.

Case Study 2: Warby Parker

Warby Parker, founded by Neil Blumenthal, Andrew Hunt, David Gilboa, and Jeffrey Raider in 2010, disrupted the eyewear industry by offering stylish, affordable glasses online and through a home try-on program.

  • Challenging industry norms: Warby Parker identified an opportunity to disrupt the traditional eyewear industry by offering a more convenient, affordable, and socially conscious alternative.
  • Focusing on customer experience: By providing a seamless online shopping experience, home try-on program, and exceptional customer service, Warby Parker built a loyal customer base.
  • Incorporating social responsibility: Warby Parker's "Buy a Pair, Give a Pair" program, which donates a pair of glasses for every pair sold, helped differentiate the brand and appeal to socially conscious consumers.

Case Study 3: Slack

Slack, founded by Stewart Butterfield, Eric Costello, Cal Henderson, and Serguei Mourachov in 2013, transformed workplace communication with its innovative messaging platform designed for teams and organizations.

  • Solving a real problem: Slack addressed the challenges of effective team communication and collaboration, providing a more efficient alternative to email and traditional messaging tools.
  • Focusing on user experience: Slack's intuitive interface, customizable features, and integrations with popular tools and services helped drive adoption and user satisfaction.
  • Leveraging word-of-mouth marketing: By offering a free version of its platform and encouraging users to invite their colleagues, Slack was able to grow rapidly through viral word-of-mouth marketing.

Common Questions and Answers

What can entrepreneurs learn from studying case studies of successful ventures?

Studying case studies of successful entrepreneurial ventures can provide valuable insights into the strategies, challenges, and lessons learned by real-world entrepreneurs. By examining these examples, aspiring entrepreneurs can gain a better understanding of what it takes to identify market opportunities, develop strong business models, build talented teams, adapt to change, and persevere in the face of adversity.

How can entrepreneurs apply the lessons learned from case studies to their own ventures?

Entrepreneurs can apply the lessons learned from case studies by critically analyzing the strategies and tactics employed by successful ventures and adapting them to their own unique contexts. This may involve identifying similar market opportunities, developing innovative solutions to customer problems, focusing on user experience and customer satisfaction, leveraging technology to scale their businesses, and incorporating social responsibility into their business models.

What are some common challenges faced by successful entrepreneurs, as highlighted in case studies?

Case studies of successful entrepreneurial ventures often highlight common challenges such as navigating competitive landscapes, securing funding and resources, attracting and retaining talented team members, adapting to changing market conditions, and overcoming setbacks and failures. By studying how successful entrepreneurs have addressed these challenges, aspiring entrepreneurs can develop strategies and resilience to overcome similar obstacles in their own ventures.

Studying case studies of successful entrepreneurial ventures is a valuable way for aspiring entrepreneurs to learn from real-world examples and gain insights into the strategies, challenges, and lessons learned by successful entrepreneurs. By examining cases like Airbnb, Warby Parker, and Slack, entrepreneurs can identify key elements of entrepreneurial success, such as identifying market opportunities, developing strong business models, building talented teams, adapting to change, and persevering in the face of adversity. By applying these lessons to their own ventures, entrepreneurs can increase their chances of success and make a meaningful impact in their industries and communities.

Entrepreneurial Failure and Lessons Learned

Social entrepreneurship and impact investing, family businesses and succession planning, entrepreneurship and innovation, entrepreneurial ecosystem and support networks, pitching and presenting the business plan.

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A Systems View Across Time and Space

  • Open access
  • Published: 11 July 2017

Community-based entrepreneurship: evidences from a retail case study

  • Sazzad Parwez 1  

Journal of Innovation and Entrepreneurship volume  6 , Article number:  14 ( 2017 ) Cite this article

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Community-based entrepreneurship is considered to be an important instrument for the realization of potential among marginal and deprived communities isolated from the mainstream economy and is important in bringing social upliftment. Cultural values, shared resources, linkages, and mutual trust work for the community, nurtured through close personal relations for the functioning of economic activities. Entrepreneurial activities creating local public goods for a community have a comparative advantage over the absolute market-oriented activities. This paper tries to follow a case study method to analyze the community-based entrepreneurship in a marginal community (Muslim). Many self-employed Muslim workers and small businesses in urban centers in a non-Islamic society indicate that they bound to have a great propensity for entrepreneurship compared to the indigenous population. The government needs to introduce a policy with implicative measures for financial and technical support to these entrepreneurial activities.

To alleviate poverty, development agencies and multinational organizations have been greatly involved in interventions in the developing world for many decades. It has been observed that the most widely adopted approaches have often been paternalistic, even if unintentionally, while ignoring the strength of local institutions (Davis 1993 ). Most of the poverty alleviation programs have degenerated into “charity” rather than building the local and durable self-reliance (Burkey, 1993 ). It is evident that the real effect of developmental interventions has been compromising in respect to community development and eventually contributes to the creation of real poverty rather than alleviation (Cornwall 1998 ; Crewe, and Harrison 1998 ; Sachs 1992 ).

A major issue in developmental activities is that projects are generally conceived and implemented by agencies rather than by community members. This has often led to a lack of ownership on the part of the local population and beneficiaries. It is exemplified by the fact that once the finances of a project dry out, the interest of the local population also recedes. Identification of this trend has forced several international and domestic agencies to conceive and implement projects with enhanced local participation (Brinkerhoff 1996 ; World Bank 1996 ).

To enhance collective development, it has been identified that focus should be on the creation of sustainable economic activities rather than welfare projects (Parwez 2016b ). It has been commonly acknowledged that enterprise development can be a crucial element in the process of economic development [Drucker 1995 ; Schumpeter ( 1934 ) 1983 ]. Numerous initiatives that have been taken and executed aimed at promoting entrepreneurship development to improve the socio-economic condition. It is discouraging to observe the general lack of success of the entrepreneurial venture as very few examples are there to be replicated.

These failures suggest that there are many gaps in our understanding of entrepreneurial processes. A recent research and theory on transitional economies, together with growing interest in micro-credits, has an effect on community issues as principal elements of entrepreneurial activity among underprivileged people (Bates 1997 ; Cornwall 1998 ; Anderson, and Jack 2002 ; Parwez 2015 ). Further, values of the western world emphasize continuation of the conventional view of entrepreneurship (Peterson 1988 ), and efforts to encourage entrepreneurship in developing countries have been shaped by a western outlook. But societies differ substantially in the degree to which they incorporate elements of entrepreneurship (Hofstede 1980 ).

Generally, developing or poor countries suffer from adverse determinants in the context of entrepreneurial activities. In the case of India, these determining factors are more in number and pronounced. India being the materially disadvantaged economy is characterized by hierarchical social systems based on ethnicity, caste, gender, religion, economic and social status, and other factors; limited or non-existent welfare systems; subsidies eliminated as part of debt reduction programs; and a high level of unemployment. These features can be a stimulant to prospective entrepreneurs, though such entrepreneurs face characteristics uncertainty and risks due to political, social, and economic instability and lack of access to capital and institutional support (Leff 1979 ; Parwez 2016c ).

This study tries to examine a community-based entrepreneurship through a case study approach with an implicit research question on how it can lead to livelihood development and eventual empowerment of the community at large. This paper is comprised of a conceptual and empirical analysis, with the application of a case study method in a community-based retail chain for furthering of the concept, with the application of a case study method in a community-based retail chain with an aim of understanding the concept further.

Concerning the type of research applied in this form of study, a qualitative research approach is evidently dominant. New insights might be gained by applying a quantitative research approach more frequently. Although this study emphasis on qualitative research for the formulation of key concepts and operationalization; another important requirement is the availability of a requisite data, and it is rather problematic in general for the formulation of key concepts and operationalization, a second requirement is the availability of a requisite data, and this is still rather problematic in general. Expectedly, this study is based on primary data on the case. In addition, inquiries suffer from a uniformity of methods, and a case study design reigns.

This study follows a single-case design. The study has taken Friendly Mart as a case study to understand community-based entrepreneurship; events and activities are limited to a single occurrence. However, the drawback of a single-case design is its inability to provide a generalizing conclusion. To overcome this limitation, triangulation technique has been applied to confirm the validity of the process. By replicating the case through pattern-matching, a technique linking several pieces of information from the same case to some theoretical proposition has helped to raise the level of confidence in the robustness of the method.

The examination of the data is most often conducted within the context of its use (Yin 1984 ), that is, within the situation in which the activity takes place. To explore the strategies the reader uses, observing the subject within her environment provides great depth which isolates a phenomenon from its context, focusing on a limited number of variables. Second, variations in terms of intrinsic, instrumental, and collective approaches to case studies allow qualitative analyses of the data. Application of a case study relied on qualitative data which give descriptive accounts of the behavior of an individual, group, and enterprise. The detailed qualitative accounts not only are generally applicable to case studies to explore or describe the data in the real-life environment but also help to explain the complexities of real-life situations which may not be captured through experimental or survey-based data or research. A case study can give access to not only the numerical information concerning the strategies used but also the reasons for the strategy use, and how the strategies are used in relation to other strategies.

Community-based entrepreneurship

People, in general, are faced with issues related to poverty, illiteracy, lack of skills, poor health care systems, etc. These are problems that cannot be tackled individually but can be better solved through group efforts. There is a need to organize the poor and marginalized to come together for solving individual or collective problems (Yunus 2008 ). Community-based entrepreneurship is now seen as a viable alternative for development processes.

A general model of a community-based entrepreneurship is the same across the region. It is led by an individual or a group, economically homogenous in nature. It has been recognized as an effective tool for capacity building of the marginalized section (Rao 2003 ). Several empirical pieces of evidence suggest that it does enhance the qualitative equality economic cultural spheres (McKiernan 2002 ; De, and Sarker 2010 ; Parwez 2014 ). The basic directive principles of community-based entrepreneurship are group approach, mutual trust, and motivation towards economic activities encouraged by institutional support. Suresh et al. ( 2003 ) summaries several factors associated with community-based entrepreneurship: functions like operations, internal problems, effective leadership, and support towards establishing a business venture.

Minniti and Bygrave ( 1999 ) argue that individuals’ decisions towards entrepreneurship is influenced by “three simultaneous elements: (1) subjective initial endowment is personal, (2) institutional and economic circumstances of economy are community specific, and (3) the existing level of entrepreneurial activity in that community is perceived by the individual.” The nature of these determinants suggests prevailing interventions some way or other addressing the issue or not. Bygrave and Minniti ( 2000 ) imply that determinant variation in entrepreneurship led processes from region to region, even with similar economic conditions. They conclude that there are threshold effects of entrepreneurship, and policy interventions that do not raise equilibrium in a community will not be successful.

The community-based entrepreneurship has evolved due to the efforts of committed individuals to promote self-employment. There is banking and non-banking, and national and international developmental agencies have also played a significant part in creating resources for these forms of activities. During the early 2000s, policy makers and agencies realized that it can be an effective developmental instrument.

The community-based entrepreneurial venture is facing problems in every step from societal barriers to the market. This form of entrepreneurship takes place among the marginalized group because of socio-economic constraints. Studies have shown that they can lift themselves from the morass of poverty and stagnation through entrepreneurial activities based on collective action (Suresh, and Saravan 2013 ).

The formation of a homogenous group with the purpose of furthering entrepreneurial activities is the challenge, directly or indirectly in the process of the empowerment (Asia and the Pacific Division, IFAD 2006 ). Further concentration can be towards the economic well-being, providing an opportunity for participation in the function of community-led economic activities (Kannabiran 2005 ).

The community-based entrepreneurship has given way to mobilization and empowerment of the poor, who can now manage their own well-being and be benefited from economic activities. The expansion of entrepreneurial activities is an important tactic for the overall strategy of economic development (Jonathan 2010 ). Community-based entrepreneurship is fairly simple; management is sustainable and their investment is on intensive entrepreneurial processes. The purpose is limited by unsatisfactory institutional support from finance to technical assistance and affects ability to fulfil basic requirement of entrepreneurial activities.

There is a certain limitation in institutional support programs; entrepreneurial activities create a possibility of safety or guaranty with respect to fulfilling their ambition. The support system is mainly concentrated to the bank network in India that too in limited extent (Satyasai 2003 ); hence, expecting a miraculous result without correcting the imbalances in the outreach is a mere illusion (Satyasai 2008 ). It is the need of the hour to formulate policies focusing on organizing people in a participative manner to be part of entrepreneurial activities rather than solely concentrating on unsustainable welfare schemes (World Bank 2003 ).

It is possible that several societal features of the poor or marginalized communities may serve as a barrier; entrepreneurship can take place in socially and culturally diverse settings (Dana 1995 ; Holt 1997 ). Economic crises and the adverse situation can also be a catalyst for entrepreneurial activity (Harper 1991 ). In challenging situations, there exists an array of reasons and only a few alternatives for an entrepreneur (Parwez 2014 ). The most compelling among these reasons is survival and the consequent need to recognize opportunities that will lead to desirable outcomes (Yusuf, and Schindehutte 2000 ).

A determining factor for enterprise development in these societies depends on the prevailing characteristics of the community. This characteristic leads to further understanding of entitlements of individual members in relation to the standing and legitimate requirements of the community itself (Peterson 1988 ). The more community-oriented a society is the more members will be entitled to certain societal benefits, including the satisfaction of needs connected with survival, such as basic income, healthcare, and safety.

It is essential to recognize, if that community orientation is inconsistent (Peterson 1988 ) then entrepreneurial accomplishment may not only be compatible with diverse social arrangements but may also benefit from the integration of specific cultural values and norms (Basu and Altinay 2002 ). Evidence suggest that a possibility of cultural identity may function as a tool for entrepreneurial activity. It appears that entrepreneurial activity can flourish in a diverse and dynamic societal and cultural environment. In many communities, especially in developing countries, a variety of combinations simultaneously creates space for a different economic logic to take place. Local public goods are mainly created by the community-led entrepreneurship rather than by the market public or private intervention (Parwez 2016a ; Hayami 1997 ). This is because the community relationship prevents free riders.

Measuring the condition at a methodological level (case study) with respect to community-led entrepreneurship is a new form of entrepreneurial behavior (Dees and Ba le Anderson 2006 ; Dorado 2006 ; Short et al. 2009 ). Existing literature confirms that these are the early years of this concept. There are a good number of articles on community-based entrepreneurship both conceptual and empirical which are written in the last two decades; although, the absolute and relative number of empirical studies remains limited. It has been observed that agreement on the definitive concept is lacking; it is worth paying considerable attention to the explication of the concept with further research orientation.

Community-oriented enterprise: a Friendly Mart case study

Community-based enterprises use business to improve the life of a community in general. They are different from private enterprises; their business activity is undertaken as a means of achieving the benefit for the community, not for private gain. The key characteristic of community-based enterprises is that assets belong or dedicated to the community. It ensures that the enterprise is accountable to the community and that the profits or a surplus created are to be reinvested or distributed for the benefit of the community. However, for the sustainability of the enterprise, it needs to be profitable while serving the community.

Entrepreneurs such as Nazeer Khan of Friendly Mart and Ali Holdar’s Qamar Restaurant are the perfect example of how a community-driven business can be successful while creating public goods for the community at large. Both these business enterprises belong to Chilea community. A business enterprise, supported by the community with community-oriented required support system, have potential to generate jobs, scale up, earn a profit, and return the benefit to the community beyond those directly employed personnel. They run an enterprise as a worker-owned cooperative or a member-based association, as much of the human resource belongs to the Chilea community. There is a role for community-based social enterprises to help strengthen local economies.

Entrepreneurs such as Nazeer Khan and Ali Holdar are the reflection of a new form of a livelihood process as for the entrepreneur’s minority community. Their success has been an inspiration to others. Generally, a large part of the minority population in India is stagnated to low-cost and low-paying jobs. Only when there is a scope that wealth generated can be used locally to improve the socio-economic condition of some or more in the community. Community-based social enterprises are unique as they organize business activities around the community in quest of providing direct benefit. They provide purposeful employment and cash income to the marginalized community members and add value as it stops cash to leak out to the non-community member. Supplying products for local consumption to the community to spin off more community enterprises leads to the development of economic decision-makers and actively engages citizens to the positive direction. Community enterprises involve stakeholders across the community; to the certain extent, the Chilea community has been successfully achieving by being brave and adventurous and by enterprising to set up an enterprise which is the reflection of change. But community-based enterprises are rare, mainly due to the low level of success and being confined to the only marginal community.

The above arguments are well supported by existing literature. In the last few decades, academics, politicians, and civil analysts have cited the falling level of community involvement, an issue for concern; community involvement has been fundamental to the process of development. Fyfe ( 2009 ) says that community engagement is the most important approach to addressing demographically and geographically emphasized programs. While many argue that engagement initiatives among communities are difficult to estimate empirically, some studies also reveal reviews of major regeneration development, demonstrating the importance of community engagement. It has been argued that despite the acceptance of community engagement, evidence does not support the prevalence of such engagement, which met mixed results. Furthermore, the critical analysis suggests that community engagement creates a sense of responsibilities for communities in terms of taking care of their surroundings (Lawson, and Kearns 2010 ). The literature around “community participation” is discussed in depth; the notion is that it is difficult to define in most accepted ways. The term is understood and spelt differently by numerous bodies as well as individual scholars, with some conflicting ideologies (Morris 2006 ). The benefits of community participation in a society are very extensive; some would say it is very comprehensive. Following decades of professional or state-led interventions, to be seen, the community has been an important knowledge resource, if captured, will lead to enhanced and responsible services. This aspect is based upon the simple base that the community knows best about their own problems, thus allowing policy makers to act according to that (Rydin, and Pennington 2000 ; Maguire, and Truscott 2006 ).

It has been observed that minority-owned firms hire minorities in high proportions. An unusual co-ethnic recruitment process by an ethnic minority’s enterprises accompanied by new jobs leads to an increase of employment among minorities themselves. Co-ethnic employment processes stimulate self-employment, work flexibility, and furthering of socio-economic benefits within the community. Entrepreneurship provides an opportunity and an alternative to unemployment. In the current situation in a developing nation like India, entrepreneurship could be the right foot forward in tackling the evils of poverty.

Recent times, minority entrepreneurship has emerged as a contemporary area of interest among social scientist due to obvious reasons. There are both social and economic reasons that make minority’s entrepreneurship important, considering unemployment and lack of formal education among minorities. Minority businesses are the essential part of the development of any society; personal initiative is encouraged and there is equal opportunity for citizens (Alvord et al. 2004 ). Considerable increases in minority-oriented business ownership can be an engine of economic growth, helping a good number of people. Minority business enterprises can make the economy stronger, facilitates community building and information flow, and enhances relationships.

A notion of social entrepreneurship is the comparatively new initiatives that employ entrepreneurial capacity to resolve existing social troubles (Shaw and Robinson 2010 ). However, most writing in social entrepreneurship has tended to center on a prominent social entrepreneur’s experiences, personal distinctiveness, leadership, and success factors (Alvord et al. 2004 ). There is inadequate literature about social entrepreneur’s activities in terms of actions and outcomes. Most social entrepreneurship studies are not based on clear theoretical underpinnings (Mair and Martí 2006 ). Therefore, generalizability inhibits the existing social entrepreneurship studies, and we cannot develop consistent theorization of social entrepreneurship. Consequently, we contend that social entrepreneurship is more than individual characteristics; it is about their actions, and impact on society that should be studied using the clear theoretical framework. Social entrepreneurship is mainly viewed in literature as a social change which remotes social values and improves the well-being of people involved in the process of enterprising (Mair 2005 ).

Relevant for a case here, namely, Friendly Mart as a social enterprise in search of opportunities and devising ways to use capital eliminates constraints for a section of society. In a fragmented polity of a state like Gujarat, where social divisions of religion exist as an obvious limitation, overcoming and providing communal economic empowerment across geographical and class barrier in Chilea community (a Muslim sect), by sharing profit with the community, is deprived by existing political economy of the state.

The classical concept of broad-based development beyond the pockets of “upper classes” dates to the publications of Marx’s volumes which elaborately deal “with classes.” Socialist view of class doctrine fails to capture a secluded religious community’s hopelessness. Even a socialist redistribution policy may not reach out to a religious minority group; policy biases towards minorities for empowerment could be helpful. In such market, imperfections of the non-Pareto efficiency of political economy in a community-oriented franchisee-based model of entrepreneurship seem to portray an innovative option and the possible path to inclusive development (Parwez 2016b ).

Setting up of Friendly Mart

Nazeer Jafri is a cousin of Pir Syed Jafri (sect head of the Chilea community) from North Gujarat, who runs a network of approximately 100 restaurants in and around Ahmedabad along with restaurants in the highway of Ahmedabad to Mumbai. These restaurants are owned in a trusteeship form, having investment from several partners.

In 2002, when he was associated with the Grey Worldwide, he had an opportunity to visit Big Bazaar, located in the same building and was inspired by the ongoing activities; people were moving around and lifting things, putting it in the trolley and taking it to counter. He found the experience empowering for customers, different from the retail shops in Ahmedabad, and the people were shopping with smiling faces, enjoying the experience, and was also amazed by the grandeur of the mall. It led him to explore the idea of retail business further, also motivated by a subconscious desire to help the community. The belief that if any entrepreneur is ready to work hard, one can compete with big brands and can create one’s own space in the market also took him further.

The restaurant was a business that could have been easier to start with due to the nature of his family background, but the restaurant business was cluttered in Gujarat; the restaurant business would be a run of the mill, not motivating enough. His ambition was to open a retail shop and grow it as a chain across the region. Retail sounded as a promising business as the market seems to be in a highly row (close to 4% organized retailing in India). It led to early discussions on the idea with peers for setting up a retail shop.

Nazeer discussed his ideas with Ali Bhai, with the proposal to set up a retail shop, who in turn told him to think big, maybe a supermarket. Additionally, he also advised Nazeer to communicate about the business plan in a social circle for investment. Otherwise, a loan from the banks can always be availed. Nazeer had Rs. 5 lakhs at his disposal from savings and could get Rs. 5 lakhs from close relatives to start the venture. But there was need of Rs. 40 Lakhs for setting up a supermarket of 700–1000 ft 2 area, which requires 20–25 lakhs for construction. After a meaningful discussion with his friends and family, he was flooded with offers for investment and, in fact, said no to some prospective investors.

The next major challenge was to identify the right location for setting up the shop; the following factors were crucial for the decision on the location: it should be in the neighborhood, the absence of an organized retailing, real estate should be reasonable, and the future developmental prospects of the area. Based on these considerations, the location of Vishala Circle (Ahmedabad) was zeroed-in for the first shop of Friendly Mart venture.

Other factors were comprised of the proximity to Vishala Restaurant, the mass number of households, the education level in the area, and the circulation of English and Gujarati newspapers. But the question whether locals will be able to appreciate retailing remained, targeting a customer base that is preferably from the middle and upper-middle class in a predominantly Muslim neighborhood.

Locations such as Navrangpura, Khanpur, and Sarkhej were also considered for the purpose. The second best choice was Navrangpura, as it is a hub of the city and cosmopolitan culture; but it was already the hub to several organized retail shops, return on investment is far stretched, and real estate price was too high; and so, they decided against it.

Adani Super Market and others mushroomed all over Ahmedabad, so Nazeer saw opportunity in the old city. The third best choice was Khanpur, as it was the main area in the old city, which possesses a cosmopolitan area, an English medium school (Mount Carmel), clubs, hotels, a college (Bhavans), and a riverfront beautification project but the absence of an organized retail shop in the area; however, there was an issue of civil disturbances and the congested environment of that area. And, it was a cramped area so the real estate price was high and future development of the area was saturated.

The options that were left were Sarkhej or Vishala in Ahmedabad. As far as Sarkhej was concerned, the proximity of the area was the major issue, the household profile was not up-market, and locals may prefer the Kirana store to a supermarket. In the end, Vishala was chosen for the start of the venture. The major determining factors were as follows: relatively cheaper real estate prices, new residential schemes were being built, in the vicinity of the Vishala Restaurant, and the area emerged out of Juhapura (a Muslim Ghetto); so, future development prospects were bright. There was no organized retail outlet in the area, and people needed to be educated. The most threatening factor of the area was that Juhapura did not have the positive image among suppliers.

Because of the post communal riots (2001), Muslims from Navrangpura, Paldi, were moving to Juhapura in the sense of security, as lives were lost elsewhere in the city. The spot for the shop in Vishala circle was a vantage point as people returning from Paldi or Ashram Road or even from the industrial area of Narol could come and shop. The place was close to densely populated middle and upper-middle class Muslim community dwellings.

In hindsight, the success of the Friendly Mart in Vishala circle could be attributed to the ability of a young Muslim entrepreneur to understand the need of the people of a convenience store in the vicinity. Nazeer could easily enter the social spaces of the Juhapura and Sarkhej inmates due to the services offered in store, and his cultural status which ultimately yielded him success. Friendly Mart was gradually able to move into the personal spaces of customers and could create customer loyalty.

Vishala Circle has situated approximately 12 km from Ahmedabad airport and has been named after the theme restaurant Vishala Village, which provides traditional Gujarati cuisine in a village ambience. It is a major landmark in this part of the city. Vishala Circle offered a lot of promise, as the area was developing rapidly, and new residential schemes and various commercial complexes like Ellicon Tower and Sunrise Complex were coming up with good connectivity by roads.

Meanwhile, the following findings emerged from a dipstick survey by Nazeer: (i) Out of the 588 households in and around, 399 households were a ready customer base. (ii) The target business was to the tune of Rs. 30, 63,522. (iii) The potential business was worth Rs. 45, 14,664. This survey was conducted to find the household size, average monthly expenditure, purchase practices, and consumer behavior towards organized retailing. Nazeer contacted the builder of Ellicon Towers; there were six shops and ten floors owned by a close friend of Aljibhai, with enough parking spaces in a grand neighborhood. He decided to purchase two shops with a total of 700 ft 2 , which was manageable in his budget in the complex.

Now, there was a need for a brand name, to create shop patronage. The brand name needed to be unique should be able to “connect” with the customers. To capture it, the brand was named as “Friendly Mart” with a baseline of “the friendly supermarket.” The positioning needed to be long-lasting and unique, which depends on the customer’s expectations and services offered. Due to the location of the store, it was a matter of access as people used to go to Vijay and Paldi; this was needed to be branded as the ideal neighborhood store. So, the positioning theme “SABSE KHAAS, GHAR KE PAAS” came to the table.

There was a need to create awareness of the shop, establish confidence among the suppliers, and build a friendly image among customers. To achieve it, he got guidance from a friend regarding the software to be used for computers, equipment to be bought, the layout of the interior in store, etc.

The store was to launch, and he employed a young man Anwar, who possessed experience in the field and lived nearby which provided him with the access to distributors. A week before the launch, orders were made to the distributors. He did commit some mistakes in the ordering process but it was a learning experience. The promotion started 10 days before the launch, he advertised through signage and the auto rickshaw with a loudspeaker, and inserts were distributed along with news sheets distributed in nearby colonies. On the launch day (12 February 2004) prominent people were invited, and he made a sale of Rs. 50,000/less on day one.

Expansion into rural franchises

A visit to Mundra Institute of Communication, Ahmedabad, gave him (Nazeer Khan) the idea of leveraging the business with a franchising structure across Gujarat. Expending in the locality where his credibility was in place made more business sense; it meant expanding into the north and central Gujarat, which possesses a sizeable population of the Chilea community. He discussed the idea with Sabir and Shabbir (managers of Ahmedabad Store) and assigned them to work on it, who later discuss the franchise model with the interested people in the village (north and central Gujarat). Two entrepreneur brothers Mehndi and Mahmud both farmers owning some land in Ilol volunteered to start off a franchise in April 2007.

The framework developed as the franchise would first register his company as a firm under the Companies Act. Technical and other support systems will be provided to them based on monthly fees on agreed terms and conditions. The benefit for the franchise was that if there were some issues to come up then later then the shop could become independent but need not be closed. The new shop at Ilol was registered as Friendly Mart Smart Shop Ilol. If there was an issue between the two parties Friendly Mart could move out of the agreement, and the franchise shall become Smart Shop Ilol.

The Friendly Mart Smart Shop in Talaav (Ilol) which was situated near a pond in the village and Pahaadiya (Ilol) was one and a half kilometers from Talaav on a slight elevation near a Kirana (convenience) store called Sahyog Kirana. Few store owners were keen to open a franchise seeing a good response to a smart shop but lack enough space, so, it may not pass muster as a Friendly Mart franchise. At time, the idea of a Saral store would be ideal to convert small Kirana stores into more organized shop, material organized in a systematic way, and sold across the counter. Thus, Friendly Mart Saral Sahyog Kirana Store came into being in October 2007. Then, a whole sequence of setting up stores in the villages’ one after the other started.

Distinctive features of Friendly Mart’s business model

Friendly Mart aimed to be the best in the locality in terms of perception and services offered; a convenience store which caters to the daily needs of people situated near, so, the target audience was the residents of the area. But now Friendly Mart has slowly spread its wings in different regions of Gujarat. Their franchises are operating in certain villages of Sabarkantha, and they wish to cover many more villages in the state.

In the organized retail industry, particularly the food retail, sales highly depend on the convenience of the customer. Evident by stories of big grocery stores like Subhiksha and Reliance Fresh, there is a wrong assumption that price is the deciding factor for any organized retail to be successful. In the Indian context, the housewife still bargains with the roadside vendor for her daily vegetables. The glamor of an organized retail has not made her change her purchasing habit of vegetables and fruits. Perhaps that is the reason many roadside vegetable vendors are in business near organized retail houses. A store which is conveniently located has much better chances of being successful than a store depending on promotional schemes, and convenience rules over pricing.

There are many product categories and brands which have been added and removed from the store over the last 5 years. He had launched a section called 20–20, every product was worth Rs. 20/less. Initially, he got a good response, but slowly, consumers turned away as the quality was a major issue, and the section was removed as it was hurting the Friendly Mart brand image.

He also tried a ready-made dress material section and a section for imitation jewelry, soon realized that huge space is required for these additional products with proper range and that having them in place is useless. It also created confusion among the clientele as Friendly Mart was perceived as a food and grocery convenience store and not a lifestyle store. Considering the continuous demand of sections on plastic products and crockery at Friendly Mart, these sections were later added. The customers received well both the sections; it also enhanced the image of the store.

Initially, when he launched Friendly Mart, his first purchase was based on speculation, conventional wisdom, and gut feel. There was no scientific way of understanding the right inventory mix and inventory size; an experience of running the store led to the realization of requisite inventory for the store.

Friendly Mart is the only organized retailer in Sarkhej-Juhapura road. This unique situation has many advantages and has a flip-side too. The distributors of products tend to have fixed their route and scheduling, which is once in a week or fortnight. As Friendly Mart is the new store, on the list of priority destination for distributors they fall downward; if for a certain reason they are out of stock of a brand, they must wait longer and may not get the emergency visit in between due to the low bargaining power. At times, certain merchandise which is not readily available at the store may disappoint customers. To solve this problem, Nazeer started ordering more quantity than the anticipated demand from the distributor and the second step was to purchase out of stock products from wholesale markets from areas like Kalupur if the distributor’s visit is not expected in few days.

Does the characteristics of Friendly Mart differ considerably from those of the competition allows adequate differentiation? It is a typically organized food retail outlet, by that logic, it is like any other good retail outlet. Friendly Mart is in the process of expansion, and once his network is in place, planning to foray into private labels can then become key differentiators and provide advantages of economies of scale.

His subsidiary company Friendly Mart Enterprise caters to more than 150 highway hotels and 100 city-based hotels across Gujarat. He realized that he has access to a network of restaurants and if he is successful in creating a business around them in such a manner that it can be an asset to his retail venture. Then, he decided to foray into bulk hotel supplies of groceries and food item. It has also helped him earn negotiation and buying capacity of loose groceries, spices, and food items; and the benefits are transferred to the store and the franchises. He is also contemplating to develop rural-focused products which can uplift the living standards of the villagers and can effectively cater their needs wide franchise network.

With more than 5 years of existence as an organized retail store in Juhapura, the goodwill of the business has enhanced and given an intangible growth. He also got the first mover advantage in this area and which again has contributed to the growth in brand value of the organization. When Friendly Mart was launched in Juhapura, in the year 2004, the area was still developing, and real estate prices were in the limit. Over the years, increasing residential schemes and apartments were established and the area has started gaining prominence. This has led to an increase in the real estate price, and investment in Friendly Mart outlet has grown manifolds. The prices of real estate have grown 4 times in 6 years, and this is a tangible part of his investment growth.

To leverage the business opportunity formation Friendly Mart Enterprise took place, a sister concern organization catering over 100 restaurants in and around Ahmedabad and 300 restaurants in other cities of Gujarat. For this purpose, Nazeer collaborated with two budding entrepreneurs Wazir Ali and Husain Abbas to look after the operational part of the business. Friendly Mart Enterprise was formed in 2008, and within the span of 2 years, turnover has gone up by 300% and profits have soared more than 4 times since then. Friendly Mart Enterprise is involved in developing private labels for supermarket business and hotel supplies.

Considering the huge demand of tea from his restaurant customers, although tea business is different from food–grocery, it led to the launching of a new subsidiary “Friendly Mart Tea Packers” with the brand name of “Day Break” in the year 2009–2010, which gave a launching pad to yet another budding entrepreneur (Abdul Basheer) in the community. The expertise of Friendly Mart in catering to hotels was a great help for Abdul. In the last year, Nazeer launched a new company “Friendly Mart (Surat) Enterprise” in Surat (financial capital of Gujarat) on the lines of Friendly Mart Enterprise, to cater to the local restaurants of the region. Local entrepreneurs and staff were trained at Friendly Mart Enterprise (Ahmedabad) for 1 year and then later sent to Surat to care of the venture.

To integrate the business even further, an off-shoot was introduced, namely “Friendly Mart Logistics” in the year 2009–2010; as the name suggests, it is a supply chain company for transport of merchandise from Friendly Mart Enterprise to franchise networks, hotels, and restaurants. Logistics arm also converted into the stockiest to other related product mixes like confectionery, biscuits, and food items, which can be provided to other distributors and retailers. Friendly Mart Logistics is run by an independent entrepreneur under Nazeer’s guidance and supervision. To strengthen the backwards integration, another subsidiary was introduced, namely “Friendly Mart Farm Services,” which mainly provides consultancy services (technical) to the farming community on the best farm practices to increase productivity and reduce production cost. In return, Friendly Mart Enterprise would purchase the produce as per the market rate and would benefit the farmers and the enterprise mutually. If the produce is more than Friendly Mart Enterprise would market the same, farmer may end up earning better returns.

Nazeer’s purpose is to help the entrepreneurs with their franchise business as the growth of the franchise network and the subsidiary will reflect on the growth of the overall business.

Results and discussion

This paper is a preliminary effort to elucidate the concept of community-based entrepreneurial activities based on evidences from a case. It tried to identify the determinants leading to formation, composition, operation, and offering of community-based entrepreneurship as a means of economic or livelihood development. There is obviously a considerable scope of further research which remains as conjectures offered in origins, evolution, and collateral effects of the said phenomenon to increase our comprehension connected with the construction, progression, and performance of under-recognized (or unrecognized) form of enterprising processes.

Major determinants could be shared locality or values (e.g., “kin-based” and various forms of voluntary as well as “natural” associations as evident in Chilea community). Factors such as rural, urban, indigenous reserves, and new settlements are also could be an impacting one. Juhapura locality happens to be the new settlement for a Muslim community after the communal riots in 2001, in another word a Muslim ghetto. Deprived socio-economic status of Muslims can be considered as a key determinant of entrepreneurial activity as observed in the case. The study also suggests that entrepreneurship among a Muslim community characteristically emerge in an environment of economic stress, drawing from the community’s traditions of helping each other. The question could be the extent to which community-based economic activities may be an effective instrument in the context of developing the livelihood that can be replicated in communities that may or may not have a shared a characteristic.

The likely impact of community-oriented enterprises towards sustainable benefits of marginal communities helps in better understanding of a new form of entrepreneurial activity but limited by scarcity of literature. In case of Friendly Mart, benefits are limited to few people involved in the related commercial activities irrespective of place, language, religion, or community. So, spillover effects are absent or limited in nature (Peredo, and Chrisman 2006 ). There are many aspects of community-based entrepreneurship which require both qualitative and quantitative assessment for furthering the knowledge.

Community-based enterprise offers a promising approach towards poverty reduction in deprived communities to the limited extent. However, economic and non-economic goals can enhance the realization of social and material resources of the communities as suggested by the case. It also touches upon the role of cultural values, institutional arrangements, and structures in the formation of the enterprise. Study emphasis on the management skills is required in a day-to-day decision-making while keeping the consistency with the broader goal as a commercial entity.

The close coupling between capitals and capacity, resource tenure, and informed leadership can work as an analytical framework for furthering the research. The challenge is the interaction between the local regulatory framework based on one’s institutional values and norms with the national and international frameworks built on different logic. Although it can be noted, this is an ongoing process.

Finally, as reflected in this paper, leadership is the most critical element for the success of community-based enterprises (Anderson et al. 2006 ). In the early days of community-based entrepreneurship, leadership is the most crucial factor to recognize opportunities and risks while mobilizing capitals and capacities to realize social benefits.

The case study also reflects that asymmetry of the information creates a moral hazard in the community. Personal interactions among people play a vital role in avoiding moral hazard. In other words, community-based entrepreneurship can be considered as a window of opportunity to realize potential, otherwise remained isolated from the mainstream economy. This is important as to bring social upliftment of a community.

It can be stated that access to capital to mainstream connections can be a determining factor towards entrepreneurial success or failure. Community-based activities lead to dependence on sect partners, personnel, and customers which can be limiting in nature. This form of entrepreneurship is also plagued with communal cultural limitations about business ethos, lack of managerial experience, formal business training, and familiarity with the institutional and legal environment. The capital concentration of enterprises in urban ghettos and societal hostility are few of the principal challenges faced by ethnic entrepreneurs in Muslim communities are prone to. Many self-employed Muslim workers and small business in urban centers in a non-Islamic society indicate that they are bound to have a great propensity for entrepreneurial activities.

Conclusions

This study tries to emphasize on the development of a comprehensive approach towards community-based enterprising to enhance livelihood prospects for local population. It is evident that entrepreneurial ventures are motivated by community orientation and undertaken with the expectation of profits to be used for an expansion and the empowerment of members. But it remains to be established as an effective model for achieving community goals, as current evidences are limited in nature. Reflections from the study suggest that community affiliation combined with requisite entrepreneurial skills is essential for this form of enterprising to be successful. A community-based entrepreneurship should reflect on the multiplicity of local needs; however, this factor is missing in this case which needs to be explored further. The empowerment promoted by community enterprises suggests a shift towards the strengthening of existing capacities at an individual level and groups in a community. The major limitation of this phenomenon is the lack of community orientation in a modern society, capacity, and generalization of a model elsewhere. Community-based entrepreneurial activities could be an effective response to the “structural and functional disconnection between indigenous, informal, and formal institutions.” Few policy initiatives need to be taken for fostering a positive attitude towards entrepreneurship among members of weak communities and encouraging the catalytic role towards further development.

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a case study on entrepreneurship

Case Questions

Smart phones are everywhere today. You probably have one nearby right now. However, access to landline phone service has not been complete for very long, and wireless service is not as widespread as many people might think. The first phone lines (landlines) connected Boston and Somerville, Massachusetts in 1877. The last town in the United States to receive landline service was Mink, Louisiana, a small community 100 miles south of Shreveport, which received landline service in early 2005. Check any major US wireless carrier, and its maps have gaps in service. Building networks of any kind takes planning, money, and time.

  • What are some similarities between an entrepreneur starting a new business in a new profession in a new market and a telephone service network?
  • How are the requirements for a telephone network infrastructure like those for a new entrepreneur?
  • What are some estimated costs, not necessarily monetary ones?
  • What are some benefits to an entrepreneur who enters a market with established networks?
  • How do established networks save the entrepreneur valuable money and time?
  • With limited resources, what criteria should an entrepreneur use to determine priorities of spending time, effort, and money in developing networks?
  • Does each criterion have equal weight? Why or why not?

The Internet Association (IA, https://internetassociation.org/) was founded in 2012 as a trade association devoted to Internet-based companies. Founding companies included Google , Amazon , eBay , and Facebook . These Internet-based companies founded this new trade group because they did not have a voice in Washington, DC, with respect to potential regulations and laws. The IA has synergy—more influence as a group than each company would have individually.

  • What prompted the formation of the IA?
  • Was it for marketing purposes?
  • Management support?
  • Industry advancement?
  • Regulatory influence?
  • What are some secondary purposes for the IA?
  • How might the original purpose of the organization shift as the industry matures?
  • Will small companies enjoy the same benefits of the larger founding organization?
  • Any new venture involves substantial risks and costs. How might a new Internet startup benefit from joining the IA?
  • How else do the large corporations benefit besides having a say in the political discussion in Washington, DC?
  • What time commitment should a new business make before expecting any positive return on investing time and money in a trade association?
  • If joining the IA requires a membership fee, what determinants should you use to place a value on the amount spent for dues?
  • What benefits of a trade association may be not easily linked to membership expenses?

In 1989, the new NFL owner of the Dallas Cowboys , Jerry Jones , fired the legendary coach Tom Landry and hired one of his former college football teammates, Jimmy Johnson , as the new head coach. Johnson faced the same problems that a new entrepreneur has: Who should be on my leadership team? What should be their responsibility? Out of twelve key coaching positions, Johnson kept only three coaches from Landry’s staff in the same positions and moved one coach to a different position. Within four years (1993), the Dallas Cowboys, under head coach Jimmy Johnson, won Super Bowl XXVII with six of the original coaches Johnson hired his first year still in the same positions.

  • How is a startup similar to an existing organization that needs to be turned around? How are they different?
  • What are some reasons to surround yourself with others instead of taking the attitude that “I can do it myself?”
  • For any leader, what are some reasons that skills in identifying and recruiting key people are more important than technical skills?

Every four years, the United States elects a president. Although the incumbent might be reelected, the United States is guaranteed to have a new president at least every eight years. On winning the election, the new president must identify candidates for cabinet positions. Some potential candidates decline the invitation and voluntarily withdraw themselves from consideration. Those who accept the invitation are put through an intensive screening process. The president then submits cabinet-level nominees to the US Senate for confirmation. As in any close group, recruiting and selecting individuals to join the presidential cabinet is critical for the president to achieve any objectives or goals.

  • What kind of experience is beneficial to members of a board of directors for a local performing arts group? Should they be experienced in industry? Government? Fundraising? Management? Marketing? The arts?
  • Besides experience, what other type of backgrounds should be considered? What about board members’ ages? Education? Gender? Residency? Financial Status? Connections to local or regional major employers?
  • What can a new entrepreneur learn from an executive director of a nonprofit about selecting candidates to build a winning team? How important is it that some candidates decline to join the board? How long should members be on the board?
  • How important is diversity in building a winning team? What skills must the entrepreneur perfect? What skills can be learned and developed later by the entrepreneur? Why is a variety of backgrounds, in the technical field and outside of the industry, important?
  • Who is the actual team leader? (1) Entrepreneur? (2) Strongest personality? (3) Smartest? (4) Most technically skilled? (5) Financier? (6) Most experienced in management?

Narciso Gómez has worked in the service department at an auto dealership for about twenty-five years and has served as the service manager for the past seven years. He is qualified for retirement through the dealership but wants to open his own business. He is looking at buying a franchise, either a Jiffy Lube quick oil-change franchise that is for sale or a new SuperGlass Windshield Repair franchise. Both are automotive service and repair related, where he has plenty of experience.

  • Besides his technical skills, what does Narciso need to consider before purchasing a franchise business?
  • How might the estimated volume of work required to generate enough sales to cover his financial obligations affect his decision?
  • The Jiffy Lube business model requires a four-bay facility. What does Narciso need to calculate in developing his business plan?
  • The SuperGlass Windshield Repair is an on-site repair model whereby the technicians drive to the vehicle’s location for work. What should Narciso’s main concerns be in developing a business plan for this business model?

Han Jia-ying was an office manager for a construction company until she decided to be a stay-at-home mother with her kids. Her former employer has called her to take over some administrative work at home, such as payroll processing, payroll tax filings, bookkeeping, and other general administrative work. Her employer has said that some of his customers probably could employ her for their general administrative tasks.

  • If she works from home, what type of scheduling issues does Jia-ying face? What might be some interruptions to her ability to meet specific deadlines, such as processing paychecks each week?
  • If Jia-ying needs additional help, what options does she have? Would she be wise to hire an employee or seek some support from someone else? Who might that be? What problems might Jia-ying encounter when seeking a nonregular employee?
  • Jia-ying will need new office equipment, including a new computer, a new scanner/printer, phone service, Internet connections, and so on. However, she is not tech savvy. How might she best manage working from home by herself, especially is something goes wrong or does not work?

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These are the reasons why businesses are getting started in 2023, 29% of entrepreneurs say they wanted to be their own boss, 17% were dissatisfied with corporate life, 16% wanted to pursue their passion, and 12% say the opportunity presented itself. Entrepreneurship in India has witnessed a remarkable surge over the past few decades. With a burgeoning economy and a dynamic ecosystem, the country has produced a plethora of successful entrepreneurs and startups. In this article, we delve into the top 10 case studies on entrepreneurship in India, each offering unique insights, lessons, and inspiration for aspiring business leaders.

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Table of Content Top 10 Case Studies on Entrepreneurship in India

Top 10 Case Studies on Entrepreneurship in India

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Year Founded : 2007

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OYO: Disrupting the Hotel Industry

Founder : Ritesh Agarwal

Year Founded : 2013

Ritesh Agarwal's story is a prime example of young entrepreneurship in India. OYO, which began as a budget hotel aggregator, has expanded globally, becoming one of the world's largest hospitality chains. Ritesh's vision is backed by a robust technology platform, and streamlined and standardized hotel operations, offering affordable, quality stays.

Key Takeaway : Identifying a market gap and using technology to address it can lead to rapid business expansion.

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Byju's: Changing the Face of Education

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Year Founded : 2011

Byju, the edtech unicorn, was born from Byju Raveendran's vision to make learning engaging and accessible. He built a unique platform offering interactive online classes for students across India. Byju's became one of the world's most valuable edtech companies, catering to millions of students.

Key Takeaway : Leveraging technology for education can create substantial opportunities and impact a wide audience.  

Paytm: A Digital Payment Pioneer

Founder : Vijay Shekhar Sharma

Year Founded : 2010

Paytm, initially a mobile recharge and bill payment platform, became a pioneer in digital payments in India. Vijay Shekhar Sharma's journey from a small town in Uttar Pradesh to building a fintech empire is an inspiration. The company's success can be attributed to its innovative approach and the ability to adapt to evolving market needs.

Key Takeaway : Flexibility and adaptability are crucial in the ever-evolving fintech industry.

Zomato: From a Restaurant Guide to a Food Delivery Giant

Founders : Deepinder Goyal and Pankaj Chaddah

Year Founded : 2008

Zomato began as a restaurant discovery platform but swiftly evolved to include food delivery services. The founders, Deepinder Goyal and Pankaj Chaddah, navigated challenges like fierce competition and the logistical complexity of food delivery. Their ability to pivot and cater to diverse customer needs allowed them to expand globally.

Key Takeaway : Adapting to changing market demands and diversifying offerings can lead to substantial growth.

Related article:  Top 10 Ways to Achieve Search Engine Optimization (SEO) Strategies

MakeMyTrip: Trailblazing in Online Travel

Founders : Deep Kalra

Year Founded : 2000

Deep Kalra founded MakeMyTrip at a time when e-commerce was in its nascent stage in India. Over the years, the company transformed the way Indians booked travel. With continuous innovation and expansion, MakeMyTrip is now a leading online travel company in the country.

Key Takeaway : Identifying an untapped niche and being a pioneer can result in long-term success.

Nykaa: Redefining Beauty Retail

Founder : Falguni Nayar

Year Founded : 2012

Falguni Nayar, a former investment banker, ventured into the beauty and cosmetics industry with Nykaa. The e-commerce platform revolutionized the beauty retail sector by offering a vast range of products, including both luxury and affordable brands. The company's success underscores the importance of understanding consumer preferences and delivering a seamless online shopping experience.

Key Takeaway : Customer-centricity and a diverse product range can lead to rapid growth in e-commerce.

Suggested:  Nykaa Case Study on Digital Marketing Strategies 2023

Freshworks: SaaS Unicorn from India

Founders : Girish Mathrubootham and Shan Krishnasamy

Girish Mathrubootham and Shan Krishnasamy co-founded Freshworks with the aim of creating a customer engagement software company. The company's suite of SaaS products has gained global recognition. Their approach to building a robust software platform with a focus on customer satisfaction exemplifies their journey from a Chennai-based startup to a SaaS unicorn.

Key Takeaway : A strong product and customer-centric approach can drive international success in the SaaS industry.

Lenskart: Redefining Eyewear Retail

Founder : Peyush Bansal

Peyush Bansal recognized the need for a reliable and convenient way to purchase eyewear in India. Lenskart introduced an online platform for buying eyeglasses and contact lenses. By integrating technology, Lenskart streamlined the purchase process, offering a wide range of eyewear and personalized services.

Key Takeaway : Identifying gaps in the market and providing innovative solutions can create new business opportunities.  

Rivigo: Revolutionizing Logistics

Founders : Deepak Garg

Year Founded : 2014

Deepak Garg's Rivigo introduced an innovative approach to logistics and transportation in India. Their relay model and tech-enabled trucking system optimized supply chain operations, reduced transit times, and enhanced efficiency. Rivigo's success in a traditional industry showcases the power of technology-driven solutions.

Key Takeaway : Applying technology to traditional sectors can lead to significant improvements and growth.

These 10 case studies on entrepreneurship in India provide a diverse range of success stories, demonstrating the versatility, resilience, and innovative spirit of Indian entrepreneurs. Each of these entrepreneurs identified market gaps, harnessed technology, and adapted to changing dynamics to build successful businesses. Their journeys serve as inspiration for aspiring entrepreneurs and underscore the limitless possibilities that await those willing to take risks and pursue their visions in the Indian business landscape.

What is entrepreneurship?

Who is an entrepreneur, what qualities make a successful entrepreneur, what is a business plan, and why is it important for entrepreneurship, what is "bootstrapping" in entrepreneurship, what is a business model.

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a case study on entrepreneurship

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How Intrapreneurship Accelerates Organizations: 4 Case Studies

Fostering an intrapreneurial culture can reap long-lasting rewards for your business, what is intrapreneurship.

Intrapreneurship is a people-centric approach to developing an entrepreneurial culture . Unlike entrepreneurs, intrapreneurs are actual employees who work with an existing company’s resources to achieve corporate innovation.

While the term “intrapreneurship” has a debatable history, it was first coined by Gifford Pinchot III and Elizabeth Pinchot in their published paper “Intra-Corporate Entrepreneurship” in 1978 and used again in their 1985 book “Intrapreneuring”. The term is a portmanteau of the words “inside” and “entrepreneur”.

Intrapreneurs are not building ventures from scratch, nor are they investing their own money into businesses. Instead, these people use an entrepreneurial mindset to develop innovative products and ideas that benefit the companies they’re working for.

Intrapreneurship can be achieved in 2 ways:

  • Experimenting with new lines of business through investment in new internal ideas
  • Instilling an entrepreneurial approach to strategy and execution into existing business lines

Why intrapreneurship accelerates growth

Companies that embrace innovation while optimizing existing products see lasting growth and profitability. A powerful yet simple approach to achieving innovation is capitalizing on the most important resource within your company: your people.

Research shows that intrapreneurship elevates both productivity scores and employee engagement . This is especially true for those employees who are more motivated by rewards as opposed to punishment. (As you might expect, employees that have a cautious and risk-averse mindset generally do not make good intrapreneurs.)

Why it’s hard to achieve

Intrapreneurship runs the risk of pinning all hope on a “genius who can save the day” which results in unpredictability of results and returns. This in turn can make it hard to champion intrapreneurship again in the future in front of boards and execs.

Furthermore, intrapreneurship isn’t as perfect a fit for all industries, especially where capital requirements and regulatory burdens are high. Some industries like aerospace and energy may face headwinds simply because the investment into internal startups must be more significant to generate data and measurable returns—and usually without the typical funding channels available to the rest of the business.

Intrapreneurial projects are also different from a traditional startup that is usually based on a blank canvas. As Bill Aulet, director of the Martin Trust Center for MIT Entrepreneurship puts it, startups are generally worry-free compared to larger companies. When you’re operating an enterprise, there’s already “a lot of paint on the canvas”.

An established business like this has several products, revenues, staff, processes, and an organizational structure—all those things that a startup is still trying to obtain—which can be both an enabler and a decelerant.

As startups mature, staying flexible and avoiding rigidity becomes harder. An entrepreneur has nothing to lose, but when you’re part of a bigger business you just don’t have that much freedom anymore due to potential threats and risks. Maintaining a balance in cases like these is crucial.

The right way to do intrapreneurship

Companies leveraging intrapreneurship the most fully tend to have 4 traits :

  • They embrace uncertainty
  • They assemble the right team and resources around intrapreneurs
  • They reward agility and incremental proof
  • They widely explore new customer needs and segments

Let's explore 4 companies that have had stellar results from intrapreneurship.

Case study 1: Amazon Web Services

Amazon Web Services (AWS) is a global cloud computing service provider. The story of how AWS became the workhorse of the cloud computing industry, now standing next to such giants as IBM, Microsoft, and Google, is fascinating, to say the least.

According to Andy Jassy, AWS leader and SVP , no “ah-ha” moment lead Amazon, then an online bookseller, to become a game-changing force in the technology market. Instead, the idea to expand gradually emerged out of the company’s frustration with its ability to support existing customers, and launch projects.

Amazon stumbled upon the concept of AWS while trying to solve a recurring need for faster technology deployments. The reason for this was the company’s focus on delivering better experiences both internally and for its partners. 

The AWS team soon started as an intrapreneurial venture within Amazon. After some time, the company began to look seriously at what this branch of business would look like in the long term. Amazon’s early-stage startup questions included:

  • Is there a market need for a better solution?
  • Do we have the competency to provide a successful product?
  • Is the space large enough to become part of the business?
  • Do we have a differentiated approach?

The answer to all of these was a solid yes. AWS was launched in 2006 and soon manifested itself as a disruptive approach to cloud computing development.

Case study 2: PlayStation

PlayStation is a captivating story of a successful product creation launched by Sony’s intrapreneur Ken Kutaragi.

Ken joined Sony in Japan in 1975. He was working as an electrical engineer at Sony sound labs when he bought his daughter a Nintendo game console. As his daughter played games, he noticed that the quality of the sound was sub-par. Ken figured that a digital chip dedicated to sound would drastically improve the quality of the gaming system. 

Long story short, he started working as an outside consultant for Nintendo while keeping his day job at Sony. Ken managed to develop the SPC7000 for Nintendo games, and as he continued working as a part-time consultant, he eventually developed a CD-ROM-based system for Nintendo.

Nintendo decided not to move forward with the CD-ROM system. That’s when Ken saw the market opportunity of gaming systems for Sony. Being a natural intrapreneur, he pressed hard to convince Sony to enter the electronic gaming industry. Sony’s then-CEO Chairman Ohga recognized Ken’s creativity and innovation-focused mindset. He backed Kutaragi’s plan despite most of the senior management opposing the idea.

Ken went on to lead the effort to help Sony develop a gaming system that later became widely known as PlayStation. The product became a global success, taking a significant market share of the same consoles and selling more than 70 million units in the late 1990s . By 1998, the PlayStation made up 40 percent of Sony’s operating revenues.

Case study 3: Post-It Notes

Post-It Notes is the classic business school example of an intrapreneurial mindset. It all started in 1974 when a 3M engineer Arthur Fry saw that a special adhesive developed by the company was failing. He noticed the glue had a slight tacky quality so he tried some of it to stick a note in his hymnal. Not only did it work, but it was also easily removable. 

However, after the initial discovery, 3M management failed to see value in the non-sticky adhesive. There was no internal senior support for the concept until a change in management in 1973. That’s when the new products laboratory manager Geoff Nicholson was convinced to give this a go. 

It wasn’t until 1977 that the product has been finally tested for real-world sales, and the rest is history.

Case study 4: Gmail

As Google’s CEO, Eric Schmidt puts it , Google’s business is all about innovation. A notable aspect of Google’s innovative culture is its legendary 20 percent time policy that allows employees to invest about a day per week to pursue projects outside of their area of duty. Through this practice, Google encourages its employees to act as intrapreneurs and think outside the box. Most of the time, Googlers that work on 20 percent projects join forces with others to create an internal start-up.

One of the most notorious and successful examples that resulted from this practice is Gmail. It all started with Google’s employee Paul Buchheit and his idea to expand Google’s services by developing a web-based email that could provide a search engine.

Most within the company thought this was a bad idea from both the strategic and product point of view. But all worries were set aside when founders of Google Larry Page and Sergey Brin decided to go ahead and support Paul’s project.

As a result, Google’s Gmail launched in 2004 and became the company’s first landmark service since its search engine service started in 1998.

Today, Gmail has more than 1.5 billion active users from around the world. It has gone from a small intrapreneurial experiment to becoming one of the key services of Google’s product offering.

Final words

It’s important to understand that intrapreneurship is by no means the catch-all solution for companies looking to innovate. As mentioned earlier, intrapreneurship is not made for every business, and it certainly can’t solve all problems. Think of it more like one of the many elements that can be applied to foster company innovation.

The case studies provided in this article all point out one simple truth: intrapreneurship isn’t just about doing things in a certain way but is more of a mindset that enables your employees to think and act in a way that supports entrepreneurial culture within the company.

It’s also not about hero employees saving the day. Developing an intrapreneurial culture takes time and has to be supported at an organization-wide level to bring lasting results.

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  • Exceptional coverage of critical entrepreneurship issues, including opportunity recognition, funding a new business, sustaining ventures, social entrepreneurship and challenges faced by collegiate entrepreneurs.

An ideal companion for instructors and students, this book is essential reading for MBA courses in entrepreneurship, non-profit management and social entrepreneurship, as well as undergraduate and postgraduate courses in business and management that specialize in entrepreneurship

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Hope Network: Where do we go from here?

A faith-based nonprofit organization is at a crossroads after learning that its founding CEO plans to retire. The board of directors must now determine what kind of leader to seek and what implications this process might have for the future of the organization. 

ABC Childcare "My hands are tied"

Elizabeth Green is the Executive Director of ABC Childcare, a financially burdened nonprofit childcare center loosely affiliated with a local YMCB in Central Massachusetts. The YMCB's efforts to centralize operations had been costlier than expected, resulting in a newly imposed salary freeze for all educators and administrators. Dissatisfaction among YMCB employees was smoldering, and teachers were increasingly tense. Elizabeth felt that without the ability to offer even the most modest of raises, she could not overcome her teachers' waning motivation. Furthermore, she became concerned about the longer-term implications. Could she and her associates develop a strategy to re-energize teachers?

Other case studies related to social entrepreneurship

Ibm corporate service corps.

Founded in 2007, IBM’s Corporate Service Corps (CSC) had become the largest pro bono consulting program in the world. The program promised a triple-benefit: leadership training to the brightest young IBMers, brand recognition for IBM in emerging markets, and community improvement in the areas served by IBM’s host organizations. As the program entered its second decade in 2016, IBM was looking for ways in which it could increase social impact while preserving the program’s other aspects.

Achievement First

On the edges of a warehouse district in New Haven, Connecticut, Amistad Academy, a charter school founded by two Yale Law School graduates, are challenging the conventional theory that poor educational performance is the result of low socioeconomic status (SES) by not only getting students on par with their grade levels in reading and math, but is pushing them to perform as well as the best suburban school districts too.

The Business of Art

In 2007 the Guggenheim began considering a proposal for a new branch in Guadalajara, Mexico. A spectacular site, a healthy tourist industry, and a cooperative local government all seemed to offer a solid foundation for a new museum. However, the Guggenheim's endowment was not growing at the same fast rate as it had during the 1990s. Was Guadalajara a good option for a Guggenheim in Latin America? Or should the Guggenheim wait and pursue offers from other cities?

CostumeRentals

This case was produced through the Yale SOM Goldman Sachs Foundation Partnership on Nonprofit Ventures. This case examines the challenges of a start-up for profit venture created by non-profit parent entities. CostumeRentals, LLC has many issues to resolve. As a new venture, it has the challenges of profitability, operational efficiency, staffing, and sustainability.

Environmental Defense - TXU

James D. Marston, director of Environmental Defense's Texas Office, has been asked by a group of private equity firms to bless their takeover of TXU in return for environmental concessions. What should his negotiation strategy be?

Govenors Island

Governors Island was a military base for 200 years. When the Coast Guard left in 1996, the island became a ghost town of landmark forts and houses as well as deteriorating outbuildings and playing fields. For some, this open land in the midst of New York Harbor represented an opportunity to build an extraordinary development. Others saw the potential liabilities. Will local, state, and federal governments make a deal?

Mercy Corps

Mercy Corps was known for its gutsy approach to disasters. While other relief and development organizations were scrambling to plan a response, Mercy Corps would already be on the ground with aid and skilled field workers. Although it was a relatively new player in the NGO world, by the late 1990s Mercy Corps had developed a reputation as a nimble, decentralized organization that was not afraid to take risks.

Profits and Principles: Benhaven's Learning Network

This case was produced through the Yale SOM Goldman Sachs Foundation Partnership on Nonprofit Ventures. In this case, Benhaven, an organization serving the needs of autistic children, struggles with the role of its consulting arm. This branch, called The Learning Network, seeks to provide revenue for the larger organization by selling its expertise to local school districts. But the organization quickly finds that there is sometimes a tension between providing quality services and profitability.

The Baltimore Fund

The Baltimore Fund LLC is a community development venture capital fund with 15 investors: foundations, individuals, a financial institution and a university. This case traces the development of the partnership from the perspective of the foundation that initiated the project. It looks at many of the decisions that had to be made to get the project underway.

Prodigy Finance

Having pioneered a successful financing model for student loans, Prodigy also was considering other financial services that could make use of the company’s risk model. What new products could Prodigy offer to support its student borrowers? What strategy should guide the company’s new product development? Or should the company stick to the educational loans it pioneered and knew best?

William Bratton and the NYPD

William Bratton, commissioner of the New York Police Department from 1994 to 1996, presided over a dramatic decline in the city’s crime rate. Hired by Mayor Rudolph Giuliani as part of a new crime fighting initiative, Bratton embraced the “broken windows” theory that had made him so successful as chief of the city’s transit police.

DonorsChoose

In 2000, Charles Best (Yale College ’98), a social studies teacher at an alternative public high school in the South Bronx, found himself frustrated because his school did not have access to many of the resources available in other New York City public schools. Best and his colleagues were able to secure basic materials, but they were unable to bring many creative classroom projects to fruition, because they lacked financial support.

Seven Theaters

First book marketplace.

Based on the idea that many community programs have some small budgets with which to purchase books, the FBMP was dedicated to stretching those dollars as far as possible, allowing programs to buy quality books in larger quantities than ever before while still earning a profit that would be used to support the First Book mission.

New Hampshire Community Loan Fund

For Americans who cannot afford a standard home mortgage, one alternative to renting an apartment is to buy a mobile home. Also known as manufactured housing, mobile homes are built in a factory and then transported by tractor-trailer to the site where they will be occupied. They provide permanent housing at prices that are less than half the cost per square foot of regular “site-built” houses.

Compumentor and the DiscounTech.org Service

A nonprofit organization has established a for-profit venture to sell donated and discounted technology products. The venture is now profitable and ambitious goals have been set for the future. This case focuses on how the general manager of a nonprofit must develop a communications strategy to build sales through different channels.

STADA: Sustaining agility and entrepreneurship in a fast-growing pharma company

Peter Goldschmidt became the CEO of pharmaceuticals company STADA in 2018. He was a firm believer in culture as a driving force – and a predictor – of organizational performance and competitiveness. A year earlier, two private equity funds had become majority owners of the “old” STADA – essentially a loose, decentralized network of country operations. After taking the helm, Goldschmidt made building a growth culture one of the strategic pillars aimed at transforming the company into a leader in consumer health, global generics and specialty pharma. As a major lever to achieve that vision, the CEO put forward four core values to define the new, aspirational brand of STADA’s culture: agility, entrepreneurship, integrity and “one STADA.” In its quest for agility, resilience and speed, STADA’s leadership recognized the need for an ambitious transformation that would improve collaboration to leverage learning, talent and technology, while centralizing some processes and reducing duplication and waste. Amid the Covid pandemic, in March 2020, STADA reported the highest production output in the group’s 125-year history. By 2022, the company was well on its way to achieving the owners’ growth objectives of becoming a strong, well-run organization. In a short span of five years, between 2018 and 2023, STADA built a platform that should allow the business to scale to five times its current size.

  • Examine the tensions, choices and trade-offs that STADA’s executives had to navigate in areas such as growth, product focus, talent and local operations.
  • Appreciate the links between strategic differentiation and higher complexity: Whereas Big Pharma has significant resources to address this complexity, mid-sized firms need strategies that develop and draw on entrepreneurial, startup-like qualities to succeed.
  • Recognize the trade-offs that leaders of agile, fast-growing businesses need to make between pursuing an ambitious growth strategy and building the capabilities and breadth of talent that such a strategy demands.
  • Draw out the competing objectives and priorities that are inherent in the dual imperatives of achieving global centralization, synergy and scale vs. strengthening local, on-the-ground autonomy and empowerment.

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Bringing Entrepreneurship and Law Together

Cultural Sensitivity in Representing Minority Entrepreneurs: A Case Study on Vietnamese Nail Shop Owners

​​Imagine living in a country where you couldn’t speak the language and navigate everyday life without being able to understand and communicate with others. Now, imagine running a business in that country. How can you navigate the business world with limited English proficiency? How do you understand the law, industry regulation, tax code, finding the right suppliers, building client base, and raising capital?

These challenges do not stop non-native English-speaking entrepreneurs from running successful businesses that generate billions of dollars. Vietnamese American nail salon owners are the epitome of resilience. More than half of all nail salons in America are owned by Vietnamese Americans, mostly Vietnamese women. In 2018, the nail salon industry was worth 8.36 billion dollars. How do women like my mother, whose educational opportunities were limited due to poverty and being subjected to the oppressive conditions of patriarchal society, find their place in America, achieve economic stability, and become players in this lucrative industry? 

a case study on entrepreneurship

The Importance of Community Networking

The growth of Vietnamese-owned nail shops is due to networking and referrals. By networking with other Vietnamese Americans and being referred for job opportunities, most newly arrived Vietnamese immigrants begin their first jobs in America as nail technicians . For most Vietnamese immigrants, being a nail technician is the fastest path to economic stability in America. Not only are most nail shops owned by Vietnamese Americans, but most nail salon suppliers are Vietnamese Americans. Vietnamese entrepreneurs also dominate the market of nail polishes, tools, equipment, massage chairs, and interiors catering to nail salons. In addition, Vietnamese Americans also run beauty schools that provide training to nail technicians and a streamlined process for nail technicians to obtain licenses. An attorney who understands the crucial role of the community in the nail industry will realize that they can get more opportunities and connect with more Vietnamese entrepreneurs through referrals. 

a case study on entrepreneurship

Link: https://hellogiggles.com/grew-up-nail-salon/

Don’t be Surprised When You See a Ten-Years-Old Translating for Their parents at a Business Meeting 

Many Vietnamese Americans immediately begin to work as nail technicians as soon as they arrive in America. Due to the massive network of Vietnamese nail-shop owners and the high demand for nail technicians, Vietnamese women have an easier time than Vietnamese men to find jobs when they first arrive in America. Although these women now take on the family’s breadwinner role, they are also deprived of the opportunity and access to pursue higher education or even learn English. Therefore, most of them rely on their children to communicate with native-English speakers. As a result, most immigrant children mature quickly and learn to navigate systems early. It is crucial that an attorney representing limited English proficient business owners can provide interpreting services to their clients. When clients show up with their child as their translator instead of making the parent feel bad, a culturally-sensitive attorney would ask the child to communicate with their parents about the importance of an adult interpreter and rescheduling the meeting to find an interpreter. Most older children, above 13 years old, can effectively translate for their parents. As I mentioned, immigrant children mature at a younger age in comparison to their American-born counterparts because they learn to help their parents at an early age. Although parents should not involve their children in business matters, Vietnamese parents’ mindset is to provide the best opportunities for their children. To do so, some of them have to rely on their children to communicate with others. Numerous private companies provide interpreting services via phone or teleconference. Law firms can enroll in these plans to ensure that their lawyers can best represent clients with limited English proficiency. Attorneys can also take initiative in hiring lawyers or paralegals with diverse and English as Second Language (ESL) backgrounds. Promoting diversity, equity, and inclusion in hiring can generate more profits and expand the law firm’s client base.

There Will be a lot of Cash

There is a lot of cash involved in nail salons, generated from tips and customer payment. In Vietnamese culture, having a large amount of cash is a sign of prosperity and stability. Most Vietnamese Americans are hesitant to use financial institutions. In representing Vietnamese entrepreneurs with a high amount of money, the attorney must communicate with clients that federal law requires a person to file form 8300 with the IRS to report cash transactions of more than $10,000. The attorneys can also advise the clients to understand the potential dangers of possessing a large amount of cash. 

a case study on entrepreneurship

Potential of Misclassification 

A lot of Vietnamese nail salon owners get in trouble with the Department of Labor for misclassifying their nail technicians as independent contractors. Classifying workers as independent contractors could potentially absolve the owners from paying employees benefits, retirement pensions, health care, vicarious liability, and unemployment compensation. However, incorrectly classifying workers may expose the entrepreneurs to legal problems such as unpaid employment taxes, failure to pay minimum wage, overtime pay, failure to provide benefits, and violation of anti-discrimination and potential state law. The U.S. Department of Labor has developed a test to determine whether nail technicians are independent contractors or employees. This test ascertains whether the nail technician rents a booth or station at a salon, purchases their own supplies and tools, sets their own schedule and pay rates, has customers pay them directly, and has their own business licenses. In representing Vietnamese entrepreneurs, it is crucial that the attorney recognizes the prevalence of misclassification in this industry and provides clients with candid advice. 

Attorneys must continue to educate themselves and evolve as our society changes and becomes more diverse and multicultural. When representing minority business owners, information about their culture will explain their economic behaviors and entrepreneurial mindsets. Cultural sensitivity training will empower attorneys to expand their skill set while allowing them to bring in more clients and make more money.

Words: 960 (Without picture, link, and source page)

https://www.blossomnailspa.net/why-so-many-nail-technicians-vietnamese

https://americanhistory.si.edu/explore/stories/finding-sanctuary-unexpected-place

https://www.statista.com/topics/4624/nail-salons-in-the-us/#topicOverview

https://www.mhanational.org/blog/be-child-immigrant

https://www.refinery29.com/en-us/2023/06/11430532/translators-documentary-children-immigrants#:~:text=From%20a%20young%20age%2C%20children,for%20their%20Spanish%2Dspeaking%20parents.

https://www.americanbar.org/groups/tort_trial_insurance_practice/publications/committee-newsletters/increasing_law_firm_diversity/

https://www.irs.gov/businesses/small-businesses-self-employed/form-8300-and-reporting-cash-payments-of-over-10000

https://www.nailpro.com/business/article/21158154/w-2-1099-heres-what-you-need-to-know-about-your-employment-status

Using Independent Contractors and Outside Firms: Avoiding Employee Misclassification by Kevin P. Hishta, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. with Practical Law Labor & Employment

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International market entry strategies for businesses.

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Salvador Ordorica is the CEO of The Spanish Group LLC , a first-class international translation service that translates over 90 languages.

In today's interconnected world, businesses are constantly seeking ways to broaden their horizons and enter new markets. Business leaders cannot deny the allure of international expansion, but they often encounter challenges and uncertainties on the path to success.

I’ve been running an international translation company that started operating in Irvine, California, and now we’ve entered into over 18 foreign countries. So, I will share what I’ve learned over the years, exploring the essential components of international market entry strategies, the pivotal role of cultural intelligence and some real-world case studies of companies that have triumphed on the international stage.

Market Entry Strategies

Before embarking on the journey of international expansion, businesses must first carefully assess their motivations and goals. Market entry is not a one-size-fits-all endeavor; rather, it demands a customized approach based on factors such as the industry, target market and available resources.

Are you looking to tap into new customer bases, reduce dependence on a single market or take advantage of cost-efficiency in other countries? Each objective requires a tailored market entry strategy.

1. Exporting

Exporting is a market entry strategy where a business sells its products or services to foreign customers. It typically involves shipping goods or delivering services across international borders, often through intermediaries or distributors. Exporting is a relatively low-risk option for entering international markets, as it allows companies to leverage their existing products or services without making significant investments in foreign operations.

2. Licensing And Franchising

Licensing allows businesses to grant foreign entities the right to use their intellectual property, such as trademarks or patents. Franchising involves replicating a successful business model in foreign markets. These options offer a quicker market entry but require careful management .

3. Joint Ventures And Partnerships

This strategy allows businesses to share the risks and costs associated with expanding into foreign markets. It's a mutually beneficial arrangement where both parties work together to achieve common goals while maintaining a degree of independence. However, successful execution requires careful negotiation, clear agreements and effective cooperation to navigate cultural differences and ensure the venture's success.

4. Acquisitions And Mergers

Market entry via acquisition or merger with foreign businesses offers speed and access to established customer bases and distribution networks. But it brings integration, cultural and stakeholder challenges. It's high-risk, high-reward, demanding thorough due diligence and post-acquisition management for international success.

5. Wholly-Owned Subsidiaries

This represents a market entry strategy where a company establishes complete ownership and control of its operations in a foreign market. In this approach, the business sets up a new entity or company in a foreign country, fully owned by the parent company. While this gives the parent company maximum autonomy and decision-making power, it also entails significant financial investment and higher risks. Wholly-owned subsidiaries are ideal when a business seeks tight control over operations, brand consistency and long-term market presence in the foreign market.

The Role Of Cultural Intelligence

In working with international markets, I've learned that one of the key challenges is navigating the cultural diversity of global markets.

Cultural intelligence , often referred to as cultural quotient (CQ), is the ability to understand and to be able to adapt to different cultural contexts effectively. In international business, cultural intelligence plays a pivotal role in the failure or success of market entry strategies.

• Understanding The Local Market

Cultural intelligence helps businesses understand the values, customs and preferences of the local population. Adapt services to resonate with locals to gain local market understanding, enhancing your success in market entry.

• Building Trust And Relationships

Establishing trust with local partners and customers is paramount. Hire local people to understand the culture of each place. This makes you prioritize cultural intelligence, respecting customs and etiquette, exemplified in successful partnerships worldwide.

• Effective Communication

Language barriers can be a significant hurdle in international business. Cultural intelligence involves effective communication strategies that transcend linguistic differences. To achieve this, prioritize cross-cultural training for your team, hire local experts and foster a culturally sensitive work environment.

• Adaptation And Innovation

Successful market entry often requires adapting products or services to meet local needs and preferences. Cultural intelligence implies innovation and adaptation in response to cultural insights.

To achieve a successful market entry through cultural intelligence as a company, I have focused on adapting services to local customs, languages and trends. Simultaneously, we encourage innovation in translation technology to maintain a competitive advantage across diverse markets.

Case Studies: Companies That Successfully Entered The International Market

Now, let's dive into some case studies, drawing inspiration from companies that have successfully entered international markets.

I think Apple's gradual but well-calculated entry into various international markets exemplifies "market entry success factors." Their localized approach to product launches and marketing is a masterclass in tailoring strategies to diverse audiences.

2. McDonald’s

We can see that McDonald's excels with franchising as a market entry strategy. Their ability to adapt their menu to local tastes while maintaining a consistent brand image is impressive.

3. Coca-Cola

Coca-Cola's global success underscores the significance of adapting to diverse drinking cultures. In the 1970s , the "I'd Like to Buy the World a Coke" campaign and the unforgettable jingle propelled international expansion. Coca-Cola maintained a consistent product while allowing room for cultural taste adjustments. Meticulous adaptation in advertising, promotions, distribution and pricing cemented its global triumph.

Today, international market entry is not just an option; it's a necessity for businesses seeking growth and sustainability. Expanding into international markets is a transformative experience that can propel a company to new heights. By leveraging the right strategies and a global mindset, businesses can unlock the door to global success and write their success stories in the international market.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

Salvador Ordorica

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