Meenakishis Literature Review Structure

Meenakishis Literature Review Structure

Title: ENHANCING ENTREPRENEURSHIP EFFECTIVENESS IN SMALL AND MEDIUM SCALE ENTERPRISES IN INDIA

1.1 Introduction

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Theory

2.1. Theory of Reasoned Action

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Literature Review

2.2. Culture of Technology Adoption

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2.3 Infrastructure and technology Support

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2.4. Skill development and capacity building

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2.5. Policy and regulatory environment

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2.6. Networking and Collaboration

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Summary of the Literature Review

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Identification of Study Gaps

Study Purposes

Research Questions

ENHANCING ENTREPRENEURSHIP EFFECTIVENESS IN SMALL AND MEDIUM SCALE ENTERPRISES IN INDIAA Literature Review Proposal

Presented

by

MEENAKSHI CHAUDHARY

Copyright by: MEENAKSHI CHAUDHARY

2023

All Rights Reserved

LITERATURE REVIEW

Introduction

The Small, and Medium Enterprises (MSME) sector has developed into a strong and active area of the Indian economy during the past fifty years. By encouraging entrepreneurship and generating a sizable number of employment opportunities at a relatively lower capital cost, second only to agriculture, it plays a critical role in the economic and social growth of the country (Kapoor, 2019). MSMEs serve as auxiliary units for large companies and make a substantial contribution to the nation's inclusive industrial progress. To meet the needs of both domestic and international markets, the MSME sector is extending its influence across a number of economic sectors and generating a diverse range of goods and services (Micro, Small and Medium enterprises, 2022).

Current Trends

2021 witnessed the rapid growth and usage of digital world by small and medium enterprises sector. They used the platform to stay connected with the clients. Entrepreneurs are increasingly using online platforms for tasks like meetings, auditing, and personnel administration, which has resulted in a huge movement towards digital transformation in business in 2021 (Surana, Singh & Sagar, 2020). Utilizing websites and social media to connect with target audiences and prospective clients has grown significantly. By implementing cost-cutting measures, making modest investments, and utilizing government programs and MSME programs, which are essential in assisting small firms, entrepreneurs can successfully manage economic downturns.

The MSME sector is thriving and makes a substantial contribution to the creation of jobs and the expansion of the Indian economy. To support young entrepreneurs, the government is actively supporting programs like Make in India, Start-up India, and Vocal for Local. Up until March 31, 2021, several financial programs, including MUDRA loans, the Emergency Credit Line Guarantee Scheme, and commercial credit facilities, have been made available to assist individuals and small enterprises services (Micro, Small and Medium enterprises, 2022). To increase productivity, the government has emphasized the value of using domestic products and helping small businesses.

Perspectives

Small and medium scale businesses have a little budget, face tough competition, and have trouble getting the infrastructure and support they need. Therefore, it is crucial to find the techniques and treatments that might support SME entrepreneurs and increase their effectiveness.

The creation of an ecosystem that is favorable to SMEs is a critical component of improving entrepreneurship effectiveness. This entails fostering an environment that encourages innovation, entrepreneurship, and knowledge exchange (Hassan et al. 2020). For SMEs to invest in their operations, modernize their technology, and broaden their market reach, access to capital and credit facilities is crucial. Business development services like mentorship, training, and advisory help can give SME firm owners the information and skills they need to overcome obstacles and grab expansion possibilities.

There is a need to foster an entrepreneurial culture and a global mentality among SME entrepreneurs is another important aspect. Instilling an entrepreneurial spirit, encouraging innovation, and encouraging risk-taking can result in the development of dynamic, resilient SMEs. It's crucial to adopt a global perspective because it gives SMEs

For SMEs to succeed, developing strong network partnerships is crucial. Working together with colleagues in the industry, vendors, clients, and other stakeholders can give you access to priceless information, know-how, and market insights (Kapoor, 2019). It makes it possible for SMEs to form alliances, exchange best practices, and work together to solve industry problems. Additionally, networking contacts support learning and capacity building, both of which are essential for adjusting to shifting market dynamics and new trends.

Specific focus of this literature review

The focus of the literature review will be on identifying the barriers and challenges which are hindering growth and innovation of entrepreneurship in small and medium scale enterprises in India.

THEORY

2.1 Theory of Reasoned ActionAccording to Theory of Reasoned Action (TRA), a social psychological theory, the intentions of an entrepreneur to use effective entrepreneurial practices are influenced by their views and arbitrary standards. A business owner's attitudes are their favorable or negative assessments of a certain behavior, such as implementing novel procedures or looking for prospects for business expansion. In terms of entrepreneurship, subjective norms are the perceived social pressure and expectations from significant persons, such as mentors, peers, or family members.

Chhabra, Raghunathan and Rao (2020) studiedthe idea of entrepreneurial intention in an individual is propensity or tendency to engage in entrepreneurial activity. They sought to advance knowledge of the elements that affect entrepreneurial ambition and its quantification.

The study identified that the underlying conditions for women entrepreneurs are less favorable than those in nations with higher index scores. This shows that in India, women confront difficulties and restrictions that obstruct their attempts at entrepreneurship. These difficulties could be caused by societal biases that are based on culture. By examining the causes of entrepreneurial intention and how they affect women propensity for entrepreneurship, the study seeks to fill in any gaps in the knowledge that may exist (Tornikoski &Maalaoui, 2019).

In reality, the conceptual model used in this study acknowledges the importance of a number of crucial aspects in influencing women's entrepreneurial intention. These elements consist of:

Personal features: These are individual factors that can affect one's intention to start a business, such as personality traits, prior entrepreneurial experience, education, skills, and knowledge.

Entrepreneurial intention is influenced by a variety of motivational elements, including intrinsic motivation (such as passion, autonomy, and challenge) and extrinsic motivation (such as financial rewards and social recognition) (Fenech, Baguant &Ivanov, 2019).

The entrepreneurial ecosystem is made up of a variety of external elements that can either support or obstruct entrepreneurial endeavors. Access to resources including entrepreneurial orientation, financing, networks, knowledge management, infrastructure, governmental regulations, and assistance programs is part of this club (Nasution et al. 2021).

These variables interact and have an impact on perceived desirability, perceived viability, and entrepreneurial potential, all of which have an impact on women's entrepreneurial intention.

Literature Review.

2.2 Culture of Technology AdoptionAccording to Kumar Bhardwaj, Garg, and Gajpal (2021), blockchain technology has attracted a lot of attention due to its revolutionary potential in the country. It has numerous advantages, such as making it easier for businesses to collaborate, upgrading working and governance procedures, streamlining operations, lowering expenses, assuring secure and accurate record-keeping, expanding transparency, and boosting overall effectiveness for budding entrepreneurs. These benefits have helped blockchain become widely accepted and used across numerous sectors and companies. For the supply chains of small and medium-sized firms (SMEs) in less developed nations especially India, blockchain technology is very important. SME supply chains may become more transparent, traceable, and efficient by utilizing blockchain, which is essential for verifying product authenticity, lowering fraud, and enhancing overall supply chain management. The decentralized structure of blockchain can aid SMEs in overcoming trust concerns and enabling safe and effective transactions, which would boost both domestic and international supply chain operations in nations like India.

The fundamental idea behind blockchain is the construction of a sequential chain of blocks, each of which contains a list of transactions or other information (Kumar Bhardwaj, Garg & Gajpal, 2021).

There are uses for blockchain technology that go beyond crypto currencies like Bitcoin. Numerous sectors, including finance, supply chain management, healthcare, voting systems, intellectual property, and more, could be completely transformed by it. As per Chatterjee et al (2020) the adoption of uCRM is positively influenced by strong leadership support and technological proficiency, increasing entrepreneurial effectiveness.

Organizations may improve security, efficiency, and transparency in their operations by utilizing blockchain, ultimately modernizing established systems and processes.

Blockchain technology is a disruptive and revolutionary breakthrough with the potential to completely change a number of industries. Decentralization, transparency, security, and immutability, which are its guiding principles, provide several advantages, including increased trust, efficiency, and cost-effectiveness.

While Chatterjee et al (2020) emphasize the benefits of adopting new technologies, Mathivathanan et al. (2021) pay attention to the obstacles and difficulties that businesses, including startups, encounter when doing so. As per Mathivathanan et al. (2021) challenges that have been identified include high implementation costs, a lack of skills and knowledge, and opposition to change. These obstacles may also be pertinent to the Indian entrepreneurial environment, indicating possible difficulties with technology adoption for effective entrepreneurship.

This implies that there are challenges to be solved even though adopting technology can increase entrepreneurial performance. It has to be noted that blockchain technology is still in its infancy, but it is becoming increasingly widely used across industries, with huge improvements in banking, supply chain management, healthcare, and other fields predicted (Chatterjee & Kar, 2020). Blockchain is positioned to disrupt conventional systems, stimulate innovation, and propel positive change in how we exchange value and manage data as organizations and governments continue to investigate and utilize its possibilities.

2.3 Infrastructure and technology SupportChatterjee and Kar (2020) stressed that SMEs should utilize social media marketing to raise brand awareness, interact with consumers, and increase sales. It is clear how social media marketing affects the efficacy of entrepreneurs, highlighting the importance of utilizing technology for business expansion. The recognition of these elements can assist SMEs in overcoming the obstacles and difficulties related to the implementation of SMM, ultimately resulting in enhanced company performance and results.

The study's findings will shed light on the elementspossibly including elements like organizational readiness, resource availability, perceived benefits, technological competence, competitive pressures, and outside supportthat contribute to the successful adoption of SMM by SMEs in India (Dhochak, Acharya & Sareen, 2019). These factors will help SMEs design customized SMM strategies and make educated decisions, resulting in increased business impact and outcomes. For instance, organizational readiness, resource availability, perceived benefits, technology proficiency, competitive pressures, and outside backing are the main variables that influence social media marketing in SMEs (Singh & Ashraf, 2020). Small and medium-sized businesses (SMEs) are impacted by social media marketing because it improves results and gives them a competitive edge by enhancing brand awareness, customer engagement, lead creation, cost savings, and overall business performance.

Chatterjee and Kar (2020) emphasized how Small and Medium Enterprises (SMEs) have significantly increased their use of Social Media Marketing (SMM) in recent years. It focused on how important SMM is to the expansion of SMEs' commercial operations by acknowledging the beneficial effects of SMM on SMEs' overall business growth, customer engagement, lead creation, brand visibility, cost effectiveness, and overall business performance.

As mentioned by Surana, Singh and Sagar (2020) to promote the Sustainable Development Goals (SDGs), India provides important lessons on how to improve incubators based on science, technology, and innovation. The authors identified the need of prioritizing SDG-aligned topics, encouraging stakeholder collaboration, supportive government policies, capacity building and mentorship, access to funding, and thorough monitoring and evaluation are just a few of the key takeaways. India has developed a conducive atmosphere for incubators to produce sustainable solutions and address societal issues by concentrating on these factors. These lessons can also help other nations create effective incubation ecosystems that leverage the potential of innovation, research, and technology to advance sustainable development and help the SDGs be achieved.

Policymakers in developing nations like India are aware of the significance of science, technology, and innovation (STI), with STI-based startups playing a critical role, in reaching the Sustainable Development Goals (SDGs). Government interventions are required to solve market flaws to support STI for the SDGs, and publicly funded incubators can accomplish this (Dhochak, Acharya & Sareen, 2019). Publicly financed incubators in India foster STI-based entrepreneurship by offering a nurturing environment, resources, technical support, connections to markets, policy lobbying, and effect evaluation. By providing a supportive environment for businesses to build and develop their cutting-edge ideas in line with the SDGs, these incubators eventually promote sustainable development and economic expansion. To help achieve the Sustainable Development Goals (SDGs), incubators focused on science, technology, and innovation are being strengthened. These incubators can encourage sustainable development, address societal issues, and drive economic growth by offering assistance and resources to start-ups concentrating on creating novel solutions in line with the SDGs (Guerrero, Lin & Cceres-Carrasco, 2021). In order to create a more sustainable and inclusive future, it is important to use science, technology, and innovation as potent tools to promote beneficial social, environmental, and economic results.

In conclusion, bolstering incubators based on science, technology, and innovation is crucial for reaching the Sustainable Development Goals. By assisting businesses in creating solutions that are in line with the SDGs, these incubators inspire creativity, address social issues, and advance sustainable development, ultimately resulting in a more sustainable future.

2.4 Skill development and capacity building A significant factor in economic growth, particularly in emerging economies, is the expansion of the SME sector. Bhattacharyya, Rahman, and Wright (2023)

indicated that by providing the required funding for expansion, encouraging entrepreneurship, and creating job possibilities, access to finance plays a critical role in fostering SME growth and fostering general economic development.

This study explores whether better financial inclusion might boost performance and growth in emerging economies' SME sector in the setting of a less developed economy. The study aims to ascertain if improved access to financial services can provide the necessary impetus for boosting the overall performance and growth of SMEs in these nations by examining the relationship between financial inclusion and SME performance.

It is evident that improving SME success requires both effective working capital management and financial inclusion (Mahesh, Aithal & Sharma, 2022). Sawale and Karpe, (2019) with their investigation has revealed that these elements, both individually and collectively, have a statistically significant favorable impact on the success of SME. These results underline how crucial it is to advance financial inclusion and put in place efficient working capital management techniques to support the expansion and success of SMEs and, ultimately, support long-term sustainable economic growth.

Effective working capital management improves liquidity, boosts profitability, ensures financial stability, promotes expansion, and improves operational efficiency, all of which have a beneficial impact on SME performance. It enables SMEs to overcome obstacles, take advantage of opportunities, and realize long-term commercial success (Bhattacharyya, Rahman, & Wright, 2023).

Economic globalization offers both developed and developing nations the chance to increase their financial prosperity by increasing their involvement in international trade, opening new markets, luring foreign investment, taking advantage of technological advancements, and exchanging knowledge. Prasanna et al (2019) mentioned that by improving productivity and efficiency in the use of labor, capital, and other resources, technological advancement is a recognized tool for removing economic barriers. It enables the economy to maximize the inputs used in production, improving output and productivity. Technological developments encourage resource allocation efficiency, improve manufacturing processes, and stimulate innovation, all of which ultimately support economic growth and development. Economies can overcome obstacles and boost their competitiveness in the global market by utilizing technology.

The production potential frontier (PPF), which indicates an enlarged capacity to manufacture more goods and services, moves outward as a result of technological advancement (Hidayat et al. 2023). As technology enables economies to produce more and use resources more effectively, this represents increasing efficiency, productivity, and the potential for economic growth.

Small and medium-sized businesses (SMEs) depend heavily on technological resources because they help them grow quickly and effectively while also adjusting to shifting consumer tastes. Technology supports manufacturing and service activities, enabling SMEs to optimize processes, boost efficiency, increase customer engagement, and successfully meet market needs (Prasanna et al. 2019). SMEs may compete successfully in the dynamic business environment, achieve scalability, and promote business growth by embracing technical resources.

The research gives important insights into the significance of technology adoption and innovation for SMEs' long-term viability and success in the global marketplace by examining the relationship between technical advancement and SME survival (Kyal et al. 2022).

The study's major contribution is the review-based framework it developed for encouraging technical advancement in SMEs within the context of competition. This framework is a useful tool for SMEs to evaluate and improve their technological capabilities, promoting innovation and market competitiveness.

2.5 Policy and regulatory environment Chawla and Kumar (2022) in their research in India concentrated on e-commerce and consumer safety. Their report gives insight on the new changes in the legal framework governing e-commerce, even though it does not specifically address SMEs. They emphasized the significance of strict consumer protection laws for fostering online transaction trust. These results suggest the value of a supportive legislative environment that encourages entrepreneurship by promoting honest and secure business practices.

Singh (2021) researched the necessary policy and regulatory adjustments for India's startup revolution to succeed. The study concentrated on the outcomes of the Startup Action Plan, which sought to foster an environment favorable to entrepreneurs. The author emphasized the beneficial role that governmental measures, such as streamlined rules, tax breaks, and simpler access to funding, play in promoting innovation and entrepreneurship. The results showed that through lowering barriers and promoting business growth, a supportive policy and regulatory environment can improve entrepreneurial effectiveness.

Chawla and Kumar (2022) and Singh (2021) supported the fact that legislative and regulatory framework is crucial for boosting entrepreneurial effectiveness in India. They emphasize the need for policies that encourage entrepreneurship through reduced rules, incentives, and increased access to resources, as well as regulations that safeguard consumers and foster trust in e-commerce transactions.

The primary objective of the project is the creation of a thorough sustainability disclosure index (SSDI) designed exclusively for small and medium-sized businesses (SMEs) in the manufacturing sector that are listed on the Bombay Stock Exchange in India (Singh et al. 2021). The index intends to evaluate and examine these SMEs' sustainability reporting practices. The research analyses the sustainability disclosures of 29 manufacturing SMEs through content analysis. According to Singh et al. (2021), the manufacturing SMEs that were evaluated lack sustainability reporting practices, particularly in the environmental and social spheres. The results show that due to current policies and regulations these SMEs must improve their efforts in sustainability reporting and give greater priority to disclosing environmental and social impacts and actions. By doing this, businesses can raise stakeholder participation, accountability, and transparency, which will ultimately lead to more sustainable business practices in the manufacturing industry.

It has been noted that these disclosures mostly consist of descriptive material and do not include any quantitative data (Shah & Lala, 2021). This disparity shows that the SMEs might lack reliable measurement and reporting systems to accurately evaluate and explain their social and environmental consequences.

By introducing the Sustainability Disclosure Index (SSDI) as a tool to analyze and evaluate sustainability practices, the study intends to close the gap in SMEs' practices for reporting on sustainability. This will allow SMEs to more effectively communicate and gauge their performance on sustainability.

The support for the implementation of strict policies and regulations that set guidelines and standards for disclosure, ensuring greater transparency and accountability in the sustainability performance of manufacturing SMEs is essential (Shah & Lala, 2021). This will improve sustainability reporting practices.

2.6 Networking and collaboration

The learning process of SMEssmall and medium-sized enterprises that are quickly becoming worldwide is examined in the essay. Puthusserry et al. (2020) explored how, after entering global marketplaces, this expertise aids these businesses in growing and enduring through time. By examining the mechanisms and components that allow learning throughout internationalization processes, the article defines the strategies and practices that can help SMEs flourish in the global business environment.

The study examined how quickly emerging market SMEs that are internationalizing gain new skills and how this learning affects their post-entry growth. The study focuses on the interaction between network connections, learning methodologies, and the expansion of SMEs in global marketplaces (Das & Rangarajan, 2020). The study intends to shed light on the ways through which SMEs from emerging markets acquire information, expertise, and resources and how these elements affect their development and ability to compete on a global scale.

As per Dar, I.A., 2019 argued that the impact of a global mentality and network connections on the internationalization of SMEs in India. It is essential to give access to International Markets so that network connections give Indian SMEs important access to international markets. SMEs can build connections with potential clients, distributors, suppliers, and investors in foreign markets through business networks, trade associations, international conferences, and partnerships with foreign partners. These linkages give SMEs the chance to contact new markets and look into global business potential.

Sharing of Knowledge and Information is crucial as through networking, SMEs can access important knowledge and information about global markets, trends, and best practices. SMEs get insights into market demands, consumer preferences, regulatory frameworks, and competitive environments in many nations through interactions with international partners and industry experts (Das & Rangarajan, 2020). This information aids SMEs in decision-making and adaptive management.

Summary of the Literature Review

Small and medium-sized businesses (SME) have become more important to India's economic and social development. It has contributed significantly to creating jobs and fostering entrepreneurship over the past 50 years, second only to agriculture. Small and medium-sized enterprises (SMEs) support large corporations and make a substantial contribution to the nation's inclusive industrial growth. Entrepreneurs are increasingly using online platforms for activities like meetings, auditing, and administration, which is part of a growing trend of digital transformation in the SME sector. To create a welcoming atmosphere for young entrepreneurs, the government has also been aggressively promoting initiatives like Make in India, Start-up India, and Vocal for Local. However, there are obstacles preventing SMEs in India from expanding and innovating. Women entrepreneurs confront cultural biases and limitations that obstruct their business goals as one such issue. The adoption of technology also faces challenges because of high implementation costs, a lack of skills and knowledge, and resistance to change. Examples of these challenges include blockchain and social media marketing. Additionally, for the success of SMEs and general economic development, access to finance, efficient working capital management, and talent development are essential. For SMEs to succeed in a cutthroat environment, embracing a global mentality, encouraging an entrepreneurial culture, and developing solid network ties are crucial. To improve the efficacy and development of entrepreneurship in small and medium-sized firms in India, these obstacles and difficulties must be overcome.

2.2. Identification of Study Gaps

2.3. Research Purposes

2.4 Research Questions

BIBLIOGRAPHY

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