Chapter 16

Some Entrepreneurial Success Stories

Ten cases have been written to probe into the environmental factors related to initiation as
an entrepreneur. Names have been disguises to protect their identity. The cases and the
conclusions are given below:
The Case of Market Research Expert Setting up His Own Firm
Salvi, born in Delhi, on 26 November 1940, did his B.Sc. (Hons) from St. Stephens
College, Delhi and then proceeded to do his M.A. at Cambridge University, which he did
in 1963. A famous market research firm in U.K. commissioned Salvi to set-up a company
in India in 1972.
On being asked about how he became an entrepreneur Salvi replied that after three years
I felt that if I could set-up a company for others and make them successful, why not I setup a company myself. Moreover, I had got an insight into what was involved in setting up
a new enterprise which gave me the confidence for starting my own business. He further
added, I had family problems which are also partly responsible for my becoming an
entrepreneur. I had a handicapped child and I had to move from Jamshedpur to U.K. for
the treatment of the child. During this period my first marriage broke up. I married a
second time and managing two families required extra money. I had a Company flat,
Company car, etc. However, I could not divide this into two parts, so I decided that the
only solution was to set-up my own company, as I wanted to send my son to Cambridge.
I felt that I must give at least the same beginning to my son which my father gave to me,
if not a better one.
About the locational advantages, Salvi said, In Bombay so many people are doing
business. If I had been in another city in India or even London, I perhaps may not have
taken up entrepreneurship.
The salient environmental factors here is a second marriage, which provided a difficult
challenge moving Salvi towards entrepreneurship. His determination to give a foreign
education to his son which he could not have done on a salaried job, the commercial
environment of Bombay which facilitated Salvis movement towards entrepreneuship and
the working experience gave him an insight into the setting up a company.
Confidence was the only personal characteristic, which was reflected in the case. This
proves that more than the personal characteristics, the environment has been important in
moving Salvi towards entrepreneurship.

The Case of Pran

This is the profile of an entrepreneur who has had no formal education whatsoever, but
has today become the owner of a business of die making.
Mr Pran hails from a small village in Ratnagiri district from a family of Hindu priests. In
his childhood, he had dreams of becoming an engineer. His father was, however, not
interested in giving him any formal education, except the traditional education designed
to equip him to become a priest. His mother, however always felt that he should become
a big man.
After the death of his father when he was 19, he stayed in his village for a few years and
married off his two younger sisters. Thereafter at the age of about 25, he stepped out to
seek his own fortune in the city of Bombay.
He landed in the famous George Motors Auto Repairing Workshop at Tardeo where he
acquired the skills for repairing motor vehicles. Since he was working in a very large and
well-equipped garage, his perception was that setting up a good garage would be much
beyond his reach. Subsequently he started working in a workshop that was making some
electrical components. During this period, he started working after workshop hours late in
the evenings under an expert die-maker. He told the die-maker that he would not expect
him to pay him anything, but the relationship would be that of a Guru and Disciple, and
the die-maker agreed to impart all his knowledge and skills to this worthy student.
After acquiring the skills of die making, he started getting a few jobs on his own and a
few through his friends and other connections. During this time, a nearby workshop
owner-a Gujarati businessman, was kind enough to permit him to use his own workshop
after 5 oclock in the evening and before 9 oclock in the morning.
After a few days of working like this, while he was looking at a lathe kept in the display
window of a small shop, he was accosted by the owner of the shop and asked what it was
that fascinated him so much. In the subsequent conversation he was able to strike a deal
with the shop owner for the purchase of the lathe costing Rs. 2,900 on down payment of
Rs. 1,400 on the understanding that the balance amount would be paid in installment
within a year.
Starting his workshop in small 5X7 space, the business has steadily grown today and
our entrepreneur owns a good workshop in Mahim Industrial Estate where he has earned
a name as an excellent die-maker. His total turnover is
Rs. 1,40,000 per year. He owns a car and also has got his own residential
accommodation.
Asked to elaborate reasons for his success, he attributed his success to his hard work and
a penchant for excellence in workmanship. He also pointed out that over the years he had
acquired a good working knowledge of English that enables him to read and understand
the necessary technical books on his subjects. He was also able to deal with all
administrative matters relating to sales tax, income tax, factory regulations, etc., for his
workshop. He acquired working knowledge of accounting and prepares a quarterly
balance sheet himself that gives him a correct idea about the direction in which his

business is going. By analyzing the factors, which help his profits, he is able to avoid
financial problems.
The environmental factors that could be isolated are his meeting an expert die-maker who
gave him training in die-making and their Guru-Disciple relationship. His fathers
death when he was nineteen gave him the freedom to forsake his ancestral profession of
Priesthood.
In this case the personal characteristics seem to be quite strong.;

Pran had a very high achievement motivation. He did not want to take up the family
profession and wanted to do something very big which landed him in Bombay.

He also possessed excellent workmanship.

Thus, the personal characteristics seem to be more dominant than the environmental
factors in his case.

The Case of R.V. Lele, the Xerox Giant

R.V. Lele was born in Bombay on 13 July 1938 in a relatively large family having six
brothers. He was the third son. Compared to other brothers he was well qualified having
done his M.Sc. in Civil Engineering (Town Planning) from University of Poona, in the
year 1972.
On being asked about the reason for his moving towards entrepreneurship, Lele said My
mother and her 7 sons including me, were doing cloth and saree business as a means of
survival as the only working member in the family (my father) was sick for about 10
years.
Lele started working on a salary of Rs. 175 p.m. as a Design Assistant. This salary was
not sufficient to meet the needs of the family. At that stage I decided that I must start
something on my own. I had a loft measuring 5X10 where I started working on my first
ammonia printing machine, which was designed and fabricated by me. Dadar was
commercial place and the locality had many educational institutions. I thought the place
was suitable for document copying business.
Lele further added, My brothers were not very happy with my taking up business. They
wanted that I should take up some job. They insulted my ability, leadership and as a sharp
reaction to them I decided that I would remain an entrepreneur. My wife who was
working provided moral support to me and today I have built up my business. The
turnover used to be Rs. 24,000 in 1964 went up to 24 lakhs during the last year. After
1974, I opened a new branch every year.
On further query regarding any other factors that moved him towards entrepreneurship,
Lele said I had a very genuine friend who deposited Rs. 500 with me in 1968. He kept
on increasing his investment in my business and now his total investmemts are Rs.
50,000. This was all his hard earned savings on which I pay him 18 per cent interest per
annum.
Lele today is a household name in Dadar area in the copying business with a large
number of branches.
The environmental factors that could be isolated are a very difficult pecuniary condition
because of the sickness of his father and family being large, the hostile attitude of
brothers and an educated working wife who provided support.
Here also the environmental factors are much stronger for movement of Lele towards
entrepreneurship, where he has achieved considerable success.

The Case of Mr Shamim

This 49 years old chemistry graduate comes from a lower middle class family from a
village in Kaira District, Gujarat. The only child of his parents, he thought of setting up a
business in consultation with some of his school friends who are also well educated.
While one of them is the son of former Chief Justice of Saurashtra, another is a Chartered
Accountant and the 3rd one is a postgraduate in Chemistry.
After his graduation, the thought of taking up a job at a paltry sum of Rs. 150 p.m. never
occurred to him. He therefore entered the business of paper/stationary trading. The strong
currents were, however, pushing him towards some manufacturing activity.
Married at the age of 20, he did not receive any help form either his parents or in-laws
beyond a few thousands of rupees. Initial investment was financed from a bank loan of
about Rs. 90,000 and equal capital contribution of Rs. 10,000 each by the partners. While
the turnover steadily increased from Rs. 4 lakhs to 35 lakhs, the assets have also
increased from Rs. 2 lakh to Rs. 25 lakhs. The firm tried unsuccessfully to manufacture
monofilament yarn for nylon cord in 1968-69, but closed the particular business after
heavy losses in 1971. He is currently in chemicals business.
The entrepreneur appeared to be eager to elaborate on his success and willing to help any
young entrepreneur who may be in a situation similar to his situation, as prevailing about
20 years back.
The environmental determinants in this case are as follows:

His close friends who were all well-educated and with whom he started a partnership
His education where the subject of chemistry made him interested in manufacturing
activity

The help from a bank from where he could take a loan of Rs. 90,000.
There were no important personal characteristics evident in this case history and most of
the credit for his movement towards entrepreneurship can be given to the environmental
factors as mentioned above.

The Case of Mr Manish

This young 36-year-old entrepreneur is the Managing Director of a private limited
company manufacturing foam rubber. His boyish chubby face gives the appearance of a
happy contented person.
He is the 4th child of his parents and having six brothers and five sisters, he has studied up
to F.Y. Commerce. Except one younger brother and one sister, the others have studied up
to matriculation only and in fact 3 sisters and one brother are non-matric.
He was brought up in the posh Napean Sea Road locality of Bombay where his father, a
pioneer in the art silk industry was staying, right from the childhood of the young
entrepreneur.
After starting a textile mill of his own, he was attracted towards the foam rubber business
based on the information given him by one of his friends who is in the export/import
business of leather garments.
Though the idea of setting up an industry occurred to him in 1968, the factory was set up
only in 1972. This was at the time when industrial licenses were not being issued for the
foam rubber industry. After repeated efforts by making applications to the government,
the unit was set up in the face of stiff competition posed by U-foam Rubber Company,
which was the biggest unit in the industry.
Since it was a large family, it was quite clear to brothers that though the father was incharge of a very prosperous business (annual income above Rs.1 lakh) all of them could
not work in one unit. Finance was apparently not a problem since an initial capital of Rs.
20 lacs, including Rs. 5 lacs as share capital could be procured without difficulty. The
brothers also had the willingness to take in their stride profits or losses up to a new lacs of
rupee. Though they hail from a business community their grandfather was in service and
only the fathers example seems to have inspired the children to go into business. While
the office is located in Bombay, sales are being made all over India.
Here the most important factors were the business family background of Manish and the
large family where everybody had to take up something new as all the six brothers and
five sisters could not be accommodated in their fathers business.
In this case, the environmental factors are the most important ones in moving Manish
towards entrepreneurship. Personal characteristics do not seem to have played an
apparent role in his entrepreneurial development.

Case of a Dentist, Who Set-up a Production Unit

Dr. Sanjay is a qualified dentist who is about 60 years of age. After completing his
degree, L.D.C.E. in 1945, he set-up his practice in dentistry along with his wife, who is
also a qualified dentist. During this period he was company doctor for a few reputed
shipping companies. He came in contact with some foreign shipping crews. He found
that they were using dentures made by a special process. This generated in him a desire to
acquire technology, for this, he visited New York. Chicago etc. in 1950-51 and actually
worked with the dentists. Thereafter he returned to India and set-up his own workshop for
making dentures with the help of this new technology. For a long period, he was the only
person employing this technology. Another competitor has set-up a factory in Santacruz
in Bombay.
The business has steadily grown from Rs. 30,000 in the first year to Rs. 4 lacs during the
last year. The assets have also gradually grows from Rs. 25,000 to Rs. 4 lacs.
Dr. Sanjay has a special interest in creative activity and would even now like to watch a
carpenter working to understand his skills and techniques. Though not an engineer
himself, he has set-up a factory that employs about 20 people. His only regret is that after
setting up the factory he has been kept so busy that he hardly had any social life.
In the course of the business, he meets dentists, their peons and other carriers who come
to collect the ready dentures. He felt that if he had continued as a dentist perhaps his
social circle wound have been much wider and he would have had many more friends
than what he has today. Monetarily he feels that he has not gained anything more
significant than what he would have earned had he continued as a dentist. In any case
money has not been a major motivating factor in setting up the factory, but the main
consideration was to learn a new technology and employ it effectively.
The environmental factors that seem to have facilitated movement towards
entrepreneurship in this case are a qualified wife who gave the necessary support for the
entrepreneurship and his contact with a particular technology where dentures were made
by a special process.
There are two personal characteristics that are important in this particular entrepreneurhis high involvement resulting in the sacrifice of his social life and his desire to do
something innovative and his interest in creative activity.
In this case there is a balance between the environmental factors and personal
characteristics in moving Dr. Sanjay towards entrepreneurship.

The Case of Mr Prasad

Mr. Prasad completed his Inter-Science in the year 1959. He had the ambition of joining
an engineering college and becoming an engineer. He, however, did not secure adequate
marks in his final examination. The result was that many of his friends joined engineering
colleges, but he could not. Then he started going to automobile-parts shop that was
owned by his friends who had come back after completing their engineering degree. He
discussed with one of his close friends who had completed the engineering degree. They
decided to would manufacture water pumps and water-pump repair kits. He purchased a
shed in an industrial estate. However, his friends father prevailed upon his son that this
partnership should not be run on 50-50 basis, as he was an engineering graduate and Mr
Prasad was not an engineering graduate. Mr Prasad feeling humiliated decided that he
would start the business on his own. His friend also felt bad about the whole incident and
proceeded to USA for higher studies, in engineering. Mr Prasad started a small
engineering business he ran for three years. However, the experience was not very happy.
He then switched over to rubber chemicals.
He got Rs. 2 lacs from his father, being his share in the property from Hindu Undivided
Family for starting the business. However, to reduce the risk his father distributed Rs. 2
lacs into 8 parts and made other brothers also a part of his business. He did well in
business and now he is on his own. He has never borrowed any money from his father
after the initial capital.

The most important environmental factor which affected Prasad was the refusal of his
friends father to allow his son to start a partnership on a 50-50 basis as Prasad was
not an Engineering graduate and Prasads humiliation over this incident provided the
necessary motivating power for his movement towards entrepreneurship.

Another factor was the financial support provided by his father in the form of Rs. 2
lacs as initial capital.
Thus, in the case of Prasad, environmental factors were the most important ones for his
becoming an entrepreneur.

The Case of a Retired Executive Taking the Role of an Entrepreneur

This is an unusual case of an entrepreneur who had set-up his business after retiring from
service at the age of 60. Balan, born in Karachi, had been brought up in Bombay. After
initial failures in business, he started serving in LIC where he worked for 14 years. He
had suffered a heart ailment about 15-20 years previously. He was asked to slow down
his activities by his doctors. However, undaunted by this situation, he believes that as
long as he can work, he should do something constructive. During the interview, he
expressed his firm determination to carry on business even if it meant initial losses.
The business consists of trading activity in leather goods and also a transport agency of
Transport Corporation of India. He expects to have a total turnover of about Rs. 8 lacs on
transport agency and Rs. 3 lacs on leather goods.
His main help has come from a friend whose business premises were available in an
Industrial Estate. This friend is also a partner in the business. On the family side, his son
is in business of rubber chemicals and is doing very well. The old entrepreneur has not
taken any help from his son to set-up his business. He started with his own money and
expects to raise substantial working capital through various courses.
Two important environmental factors areimportant in the case of Balan. These are:

Help of a friend whose business premises were made available in an Industrial Estate
and who subsequently became a business partner. The fact that his son was already in
rubber chemical business may have induced a feeling of security in the old
entrepreneur.

However, the most important characteristics of this entrepreneur was his Never say
die attitude. He has done business earlier, but left it as the business failed. He then
worked for 14 years and ultimately started his business again.

Thus the personal characteristics which may be termed as achievement motivation is of a

very high order. These personal characteristics have been supported by the environmental
factors in his movement towards entrepreneurship.

The Case of a Non-Engineer Starting an Engineering Business

Panda is a 46-year-old partner in an Electronics firm. A matriculate himself, he started an
engineering stores selling product to big organizations. His first partner was another nontechnical person who brought in the capital required for the business. Initially they took
up the line of automotive spares and electricity items. Soon, however, they found that
there were a number of malpractices in the business of automotive spares and decided to
concentrate only on electrical goods. A famous multi-national electronic business gave
them ample support by way of guidance and developed them as an ancillary industry.
Today the firm manufactures several electrical/electronics items, control accessories,
material handling equipment, etc. The diversification has mainly come from electrical to
electronics items of a similar nature.
When asked whether he considers himself a successful businessman, he stated that
whether the business has been a success or not, can be decided only on the last day of
ones life. The two other partners are both engineers and joined only recently after the
business was well established.
There is no doubt about the success of the business. With a modest beginning of Rs.
10,000 in 1964 in terms of turnover, it has today grown up to Rs. 30 lacs per year. It
occupies 4/5 blocks in Mahim Industrial Estate and the total assets employed have been
quite substantial though the figure given was Rs. 1,50,000. It is also interesting that this
unit has spent substantial amount on Research & Development and one block is devoted
to R & D work only.
A study of the above case indicates that the environmental factors that facilitated
entrepreneurship were the capital from the partner and the help imparted by a multinational.
On the personal characteristic side, it is felt that his statement whether the business has
been a success or not can be decided only on the last day of ones life indicates a very
high achievement motivation on the part of Panda.
In this case, there is a balance between the personal characteristics and the environmental
factors in moving Panda towards entrepreneurship. Though, environmental factor seems
to be slightly more important than the personal characteristics.

The Case of an Export Consultant

On being asked to narrate the factors, which moved him towards entrepreneurship, Dalal
said, My life when I was young was very miserable. My father expired when I was just a
few months old. I had no brothers or sisters. My mother was my only source of support.
As my mother had no one else, we were given shelter at my mothers aunts house. My
mother had to do the household work there to support both of us.
He added, I went through a lot of hardships during the time of my education. My mother
worked hard to see that I got the best of education. I studied up to the 6 th standard at my
village. After that I came to Bombay to my uncles house. Here too, life had become very
hard. Going through all these hardships and always depending on others for my needs, I
thought it better to become independent rather than depend on others. From then, I
always thought of becoming independent and this had an impact on my career and study
too.
It was during my school and college that I adopted a self-study method. It was because
of the school where I studied. The teaching was not up to the standard is this school. The
teachers never bothered about explaining the lessons. I felt that at this rate I would never
be achieving anything in life. So I started this self-study method where I used to study
everything on my own, I never depended on anyone for any guidance or help. This played
a very big role in making me independent in my attitudes. Even in college I adopted the
same method. After doing my engineering another problem came up, it was getting a job.
I was unemployed, as I had no one to help in getting me a job. I had to do all kinds of odd
jobs and finally I got a job of Rs. 300/month.
Later on after a year or so, I got a job at a well-known company at Poona on a salary of
Rs. 450 as a Sales Engineer. But here my talents were not recognized.
The above two jobs forced me to think deeply of becoming independent. But being
based in Poona and on tour most of the time this was not possible. So I thought of
shifting back to Bombay in search of some good opportunities. I then took up a job in a
governmental establishment at Bombay as Design Project Engineer, on a salary of Rs.
710. Here, too, it was more of personality clash and politics.
I now feel that the kind of independent study and self motivation with determination was
thus the beginning of entrepreneurship. It was during this time that Export and Import
was in great demand. I heard a lot about it and was also interested in this particular field
and considered whether I would succeed if I took up this subject seriously. I started
studying this particular subject independently and of course attended a few lectures on
them and determined to become an entrepreneur within two years. I worked day and
night on this subject and in April 1973, I designated myself as an Export Consultant with
a small office, and within a few months resigned from my government job.

My income increased with consultancy and training programmes. In 1975 I started Dalal
Export-Import firm by starting the export of Dalal brand diesel engine and later on moved
export of other lines.
Dalal is the top most import-export consultant in Bombay today. He has authored a book,
which is in great demand.
The environmental factors identified here are as follows;

Very difficult family conditions with the demise of his father when he was only a few
months old. But for his mother, there was nobody else in the family. His mother had
to support both of them by her work.

The companies where he took up jobs did not give him satisfaction. One company
was in the private sector where his talents were not fully utilized and the other was a
government establishment where there was politicking and intrigue.
These negative environmental factors moved him from a salaried job to entrepreneurship.
Two personality traits played a significant role in the entrepreneurial development of
Dalal.
His independent nature and his self-study habit.
Making a name in an area without any background only based on self-study is an
achievement, which is indicative of the high achievement motivation of Dalal.
In this case there is balance between the environmental factors and the personal
characteristics moving Dalal towards entrepreneurship.