Dynamics of Small Family Business in a Special Economic Zone: A Case of Kumar Overseas Private Limited

18 Pages Posted: 29 Jun 2013

See all articles by Apoorva Srivastava

Apoorva Srivastava

Amity University, Lucknow Campus - Amity Business School

Date Written: June 29, 2013

Abstract

Kumar Overseas Private Limited is a small enterprise in Bhadohi Special Economic Zone (SEZ). Structural reforms have caused the old-born firm to be reorganised into an incorporation known as ‘Kumar Overseas Private Limited’. Kumar Overseas had been born from Hindu Undivided Family (HUF) business of Kumar Associates. Despite odds, it is wondered that the company continues to make profits on a large scale.

Located into an SEZ could have conferred more benefits to Kumar Overseas, though in reality, the SEZ itself is languishing since there are no private developers who would have interest in building up the SEZ. Amidst a flock of issues related to poor infrastructure, folklores for work ethics, low labour productivity, high transaction costs, stifling entrepreneurship and lack of predictability entail significant disadvantages for SMEs in developing nations. Lengthy processing time affects opportunity costs as also the capital standing of the firms. For operators such as Kumar Overseas, lengthy processing constitutes a prohibitive trade barrier. These factors can deter SMEs and enterprises in developing nations from seeking to expand in international markets.

The structural reforms are yet to be completed in India. The mechanism for information dissemination and decision making in most of the firms located in Bhadohi SEZ are still pristine. The price of carpet does not reflect the productivity of weavers. Unto what extent have such structural reforms been able to trickle down to infuse professionalism in the business environment and improve decision making are concerns of the Atul, one of the directors at Kumar Overseas.

Keywords: entrepreneurship, family dynamics, evolution of small business, structural reforms

Suggested Citation

Srivastava, Apoorva, Dynamics of Small Family Business in a Special Economic Zone: A Case of Kumar Overseas Private Limited (June 29, 2013). Available at SSRN: https://ssrn.com/abstract=2287216 or http://dx.doi.org/10.2139/ssrn.2287216

Apoorva Srivastava (Contact Author)

Amity University, Lucknow Campus - Amity Business School ( email )

F-3 Block
Sector-125,
Noida, Uttar Pradesh 201301
India

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