Taxonomy Of VUCA In Indian Startups: The Future Of Entrepreneurship
Therefore, the majority of entrepreneurial firms should rally on being highly innovative. They should continue possessing and harnessing upon dynamic capabilities. They mantra of being competitive banks on their persuasion for innovation, which is their primary success engine
Successfully operating a firm demands overcoming numerous obstacles presented by the business environment. In the past, these difficulties have impacted businesses in different ways. In the current turbulent business world, their impact can be witnessed in speed, frequency, and intensity, are on the rise. The 'VUCA' abbreviation, which was first introduced by the 'US Army War College' in 1998 to describe the business environment's 'volatility, uncertainty, complexity and ambiguity,' is commonly used to represent these collective issues, which have a dynamic character and frequent changes.
Entrepreneurship and innovation are linked. The ones who innovate are termed as as 'entrepreneurs' or 'innovators', and their efforts ultimately lead to wealth creation. Starting from scratch, Indian start-ups like Policy Bazar, Housing.com, Lenskart, ShopClues, Red Bus, Grofers, and others belonging to different industry verticals have generated wealth. Of all the start-ups, the ones that focus rigorously on production and whose focal goal is the commercialisation of new and innovative ideas are termed as entrepreneurial firms like Paytm, Zomato, Mu Sigma, Bookmyshow, Urban Company, etc. These enterprises can transcend into innovative firms like Hindustan Lever, Asian Paints, or RedBus, when their ultimate aim is to innovate and create products or and services while disrupt the industry vertical.
Old horses such as Samsung, Motorola, Samsung, Toyota, Honda, Daimler-Benz and Exxon, among others are in fight to continue to be labelled as highly innovative companies, albeit temporarily. They all are fighting in the vortex of staying ahead on innovation. In a turbulent world characterised by volatility, uncertainty, complexity, and ambiguity (VUCA), is it speed, accuracy, and creativity that sustain businesses? To debate, is not invention the growth engine?
Most of the aforementioned entrepreneurial endeavours will endure radical changes in space and category. At the same time, this context of entrepreneurship may dilute in the coming times, undergoing radical transformation. Thus, what we all are about to witness is a future propelled by entrepreneurship that shall be distinctive.
Therefore, the majority of entrepreneurial firms should rally on being highly innovative. They should continue possessing and harnessing upon dynamic capabilities. They mantra of being competitive banks on their persuasion for innovation, which is their primary success engine. Due to the altered nature of innovation, this imminent shift can only be achieved by pursuing and incorporating dynamic skills. It has evolved into more open and engaging collaboration, followed by more profound insights. Thus, entrepreneurial firms will be required to steer their organisational structures and innovative thinking when they approach their boundaries. In a VUCA framework, it is important to know what dynamic talents are and how they affect the future of entrepreneurship.
Globally, we all appreciate the tenets of agility and accuracy that are broadly understood. The era in which organisations possessed monopoly had an opportunity to carry on business, unimpeded by competition. The shifting competitive landscape necessitates a strategic change from outdated to newer techniques. The business climate is volatile and rapidly evolving and hence, these enterprises must rise to the occasion.
The term taxonomy refers to some kind of classification within the realm of science. Every start-up undergoes VUCA context associated with diverse stages of ideation, conception, execution, and growth. Few of these VUCA situations are classified as business environment (economy), entrepreneur (individual), and company perspective, among others. These are subdivided further into regulatory frameworks, markets, and customers. For an entrepreneur, decision-making is mostly determined by traits e.g. risk tolerance, behaviour, etc. Major difficulties inside the enterprise include finding the appropriate product, technology, mapping resources and competencies, team building, etc. Thus, the taxonomy requires investigation and some modifications, as deemed necessary.
Standing out from any kind of competition and performing in a VUCA world, the entrepreneur-cum-manager must possess the following five skill sets:
· In the technology area, they should possess agility, a high degree of flexibility, and be open to diverse opportunities. These may be as a result of change for successfully managing it in an ever-changing dynamic market.
· They should not avoid risks and must embrace the future with unlimited opportunities.
· To disrupt the industry, an entrepreneur-manager should be a change agent characterised by a matrix environment. The success of a business depends on how well the product development, supply chain, sales, and marketing work together. All of these things are related to the technology that connects the business to the client.
· Entrepreneur-managers should create a 'glocal' culture in their organisations. They should extend empathy to people with different backgrounds connected with a global perspective but at the local level.
· These entrepreneur-managers should be the pivot in motivating people for their best performance. This should enable them in crafting and pursuing a win-win situation. This is plausible with close assistance of co-workers and team.
Start-ups work in a volatile, uncertain, complex, and ambiguous (VUCA) environment that is hard to predict. However, entrepreneurs can get ready for VUCA with a strong response strategy. They must be VUCA learners. With evolving perspectives on global entrepreneurship, a great deal must
be originated by incumbent start-ups in this entrepreneurial space and to establish an anticipatory organisation, which is ever ready in responding to turbulence.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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