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MANAGEMENT-3600Term paper
On
EMERGING
ENTREPRNUERSHIP TRENDS
IN INDIA
Vignana Jyothi Institute of Management
SUBMITTED BY:
SHALINI: 10343
SHIVA: 10344
SOUJANYA: 10345SUDIP: 10346
DEEPIKA: 10347VIKRAM REDDY V: 10348
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Contents
Abstract ................................................................................................................................................... 4
Introduction ............................................................................................................................................ 5
Emerging themes in entrepreneurship research....................................................................................... 6
Emerging trends in Indian Entrepreneurship ......................... ................................ ...................... ............. 7
Tourism and Hospitality ....................................................................................................................... 7
Auto Ancillaries .................................................................................................................................... 7
Two Wheelers ............................. ........................ ................................ ....................... .......................... 7
Garments ............................................................................................................................................. 8
Software .............................................................................................................................................. 8
Light and Medium Engineering Industry ............................ ................................ ...................... ............. 8
Trading/Supplies .................................................................................................................................. 8
Education and Training ........................................................................................................................ 9
Poultry ................................................................................................................................................. 9
Food Processing ................................................................................................................................... 9
Fruit and Vegetable Processing ............................................................................................................ 9
Manufacture of Business Attires ........................................................................................................ 10
Corporate Gifting ............................................................................................................................... 10
Herbal Medicines and Skincare Products ........................... ................................ ...................... ........... 10
Mineral Water ................................................................................................................................... 11
Paints, Enamels and Varnishes ........................................................................................................... 11
Organic Farming ................................................................................................................................ 11
Music and Entertainment................................................................................................................... 12
Writing Instruments ........................................................................................................................... 12
Plastics............................................................................................................................................... 12
Toys ................................................................................................................................................... 12
Floriculture ........................................................................................................................................ 13
Health-care Sector ............................................................................................................................. 13
Biotechnology .................................................................................................................................... 13
Information Technology (IT) Enabled Services .................................................. ....................... ........... 13
Education Portals ............................................................................................................................... 14
Organized Retailing ............................................................................................................................ 14
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Processing, Refrigeration and Transportation of Food, Vegetables and Fruits....... .......................... .... 14
Cruising Business ............................................................................................................................... 15
Courier Services ................................................................................................................................. 15
Summer Solution Related Business Opportunities ............................ ........................... ....................... 16
Efforts in India to Promote Entrepreneurship ........................................................................................ 16
Conclusion ............................................................................................................................................. 17
Bibliography: ......................................................................................................................................... 18
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Abstract
Entrepreneurship is a dynamic process of vision, change, and creation. It requires an
application of energy and passion towards the creation and implementation of new ideas and
creative solutions. Essential ingredients include the willingness to take calculated risks in terms
of time, equity, or career; the ability to formulate an effective venture team; the creative skill to
Marshall needed resources; and fundamental skill of building solid business plan; and finally, the
vision to recognize opportunity where others see chaos, contradiction, and confusion. Desirable
rate of economic growth calls for rapid emergence of a multitude of enterprises in all walks of
life. This requires the creation and maintenance of an environment that is conducive to growth of
existing enterprises and would help build up a wider base of population capable of successful
entrepreneurial behavior.
Given the increasing significance and visible impact of Entrepreneurship in wealth-
creation and employment-generation, it is critical to Indias growth and development. It has
undertaken this study to explore factors that have advanced Entrepreneurship in India and
emerging trends in entrepreneurship in various areas.
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Introduction
Entrepreneurship is more than the mere creation of business. Although that is certainly as
important facet, its not the complete picture. The characteristics of seeking opportunities, taking
risks beyond security, and having the tenacity to push an idea through to reality combine into a
special perspective that permeates entrepreneurs. An entrepreneurial perspective can be
developed in individuals. This perspective can be exhibited inside or outside an organization, in
profit or not-for-profit enterprises, and in business or non-business activities for the purpose of
bringing forth creative ideas. Thus, entrepreneurship is an integrated concept that permeates an
individuals business in an innovative manner. It is this perspective that has revolutionized the
way business is conducted at every level and in every country. The revolution has begun in an
economic sense, and the entrepreneurial perspective is the dominant force! Desirable rate ofeconomic growth calls for rapid emergence of a multitude of enterprises in all walks of life. This
requires the creation and maintenance of an environment that is conducive to growth of existing
enterprises and would help build up a wider base of population capable of successful
entrepreneurial behavior. Driven by supportive government policies, maturing clean technologies
and growing investor appetite, India is fast becoming a hub for entrepreneurs.
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Emerging themes in entrepreneurship research
The major themes that characterize recent research about entrepreneurs and new-venture
creation can be summarized as follows:
1. The entrepreneurial and managerial domains are not mutually exclusive but overlap to a
certain extent. The former is more opportunity-driven, and the latter is more resource and
conversation driven.
2. Venture capital and other innovative financing techniques emerged in the India with
unprecedented strength, fueling the entrepreneurship.
3. Intrapreneurship (corporate entrepreneurship) and the need for entrepreneurial cultures have
gained much attention during the past few years.
4. Entrepreneurial strategies have been identified that show some important common
denominators, issues, and trade-offs between entrepreneurship and strategy.
5. The great variety among types of entrepreneurs and the methods they have used to achieve
success have motivated research on the psychological aspects that can predict future success.
6. The risks and trade-offs of an entrepreneurial career, particularly its demanding and stressful
nature has been subject of keen research interest relevant to would-be and practicing
entrepreneurs alike.
7. Women entrepreneurs have emerged in countable numbers. They appear to face obstacles and
difficulties different from those that other entrepreneurs face.
8. The entrepreneurial spirit is universal, judging by the enormous growth of interest in
entrepreneurship around the world in the past few years.
9. The economic and social contributions of entrepreneurs, new companies, and family
businesses have been shown to make immensely disproportionate contributions to job.
10. Entrepreneurial education has become one of the hottest topics at Indian business and
business schools. Additionally, a number of major academic institutions have developed
programs in entrepreneurial research.
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Emerging trends in Indian Entrepreneurship
It is high time out entrepreneurs realize the importance of being choosy in project
identification. Till recently, we in India kept on exploring the possibilities of manufacturing
almost everything, right from pins to planes and screws to sub-marines. Just as companies and
individuals carry out SWOT analysis for identifying business opportunities for our entrepreneurs.
The completing demands for our limited and meager resources are many and unless we apply a
degree of selectivity in our approach in resource allocation, we will continue to be a nation of
foundation stones.
Tourism and Hospitality
India is a country of many countries. Our diverse culture, religions, languages, rich
heritage and vast geographical area make the country a place of tourist attraction. Hills and
beaches, temples and palaces, the deserts and the jungles are all these. There are not many
countries in the world where you can surf the sand and the sea. Privatization of airports and
aviation sector could further give boost to tourism industry. Tourism should therefore receive
topmost priority.
Auto Ancillaries
India may not be the best car-manufacturing base, but we can certainly be the best
ancillaries to the automobile industry world over. Our entrepreneurs are capable to developing
global scale auto ancillaries. By all means, we should also continue car manufacturing, but we
must do it at a scale and quality at which the world community takes us seriously.
Two Wheelers
As a nation we have excelled in production of two wheelers be they cycles, scooters or
motorcycles. We have the technology, the skills, and most of all, the critical mass to affect a
breakthrough. We should aim at capturing the worlds two-wheelers markets.
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Garments
India has the potential of becoming a leading supplier of garments, apparels, silk, hosiery
and textiles. Indian textiles are well known world over. Our Ludhiana and Tirupur entrepreneurs
have done proud to the country in the area of woolen and cotton industry. By understanding
customer needs through extensive and systematic market research we can capture more markets
world over.
Software
India has already made a strong dent in worlds software market. For us the most natural
thing is to be number one software and consultancy services suppliers. Our country has the right
resources in the form of vast population of educated youth. Other developed and developingcountries with vast resources can perhaps continue making advances in manufacturing of
computers, computer hardware and computer chips year after year. Software exports from India
are growing more than 50 per cent per annum.
Light and MediumEngineering Industry
Many countries of the world are far ahead of India in manufacturing aircraft, ship and
products of similar nature. Unfortunately, we in India try to manufacture everything and finally
end up doing nothing well. Our strength lies in the light and medium engineering industry. We
are in a position to provide a leading edge in this industry. India also has the capability of
becoming worlds best foundry products maker. We should concentrate more areas where we
have an edge rather than thinly spreading our limited resources and expertise in areas like
manufacture of aircraft and flexible machine systems.
Trading/Supplies
Among Indias vast population there are communities like Marwaris, Punjabis, Gujaratis,
Tamilians, etc., with acumen for trading and acting as suppliers. It is, therefore, logical on part of
such communities to become global players in trading and operate at international levels. By
doing so we will be doing something that we are good at.
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Education and Training
India has some of the worlds best universities and educational institutes, i.e., IIMS, IITS,
IISc, etc. The cost of education and training in India is nominal in comparison to developed
countries. There is vast reservoir of talented people in the country. By pooling resources and
networking with resource organizations we can create education and training facilities not only
for Indians but also for scholars from abroad. Indian educational institutions, both government
and privately managed, have the capacity and expertise to offer affordable education to persons
from other countries.
Poultry
India holds lot of potential for developing its poultry and poultry based industries. Avast population and export potential make this industry a lucrative activity for those who want to
be in poultry allied industry.
Food Processing
India has emerged as one of the topmost food producing countries in the world. Indian
climate is suitable for growing vast varieties of food grain. At present, most of the food grain is
sold in raw form. In food habits the world over is undergoing change. As a matter of
convenience, people, especially youngsters, prefer fast food or ready to eat food. Indian food is
well known world over. We need to exploit this potential by processing our food grains.
Processed food will have good market in India as well as abroad. Food processing would also
help us earn must-needed foreign exchange.
Fruit and Vegetable Processing
Fruit and vegetables are grown in plenty in India. The country has emerged as a leading
producer of fruit and vegetables. Because of poor transportation facilities, inefficient
infrastructure, bumper crops and lack of marketing facilities, many a time, lots of vegetables and
fruit simply go waste. We need to create fruit and vegetable processing facilities all over the
country so as to harness the potential for their production. Fruit and vegetable processing offers
potential for high value addition and potential entrepreneurs can earn a lot from such products.
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By processing of fruit and vegetables, our producers will get proper price for their products,
entrepreneurs will have good business opportunities, masses will get employment and export of
processed fruit and vegetables will increase. While processing fruit and vegetables, our
entrepreneurs need to take all possible care so as to ensure quality and standard of their products.
Manufacture of Business Attires
Manufacture of business attires, especially for Indian women, is going to be a rewarding
business in days to come. Womens participation in white-collar jobs is on the increase. With the
influx of multinational companies in India, workplace outlook and environment are improving.
Well managed companies, whether MNCs or of Indian origin, expect their employees to look
smart and dress well. Some of the organizations also prescribe a dress code. Increasing presence
of women in various workplaces has given a boost to business attire market. Till recently,
business attires, especially for women used to originate from developed countries and women
used to pay hefty price for such dresses. The growing business attire market offers good business
opportunities in this sector. Our potential entrepreneurs can think of getting into this business
both for Indian and overseas clients.
Corporate Gifting
Corporate gifting has picked up in India in the recent years. Indian companies and
business organizations spend crores of rupees on giving gifts to their employees, shareholders
and business associates on occasions like Diwali, New Year and Annual General Meetings. As
per rough estimates, corporate India spends approximately Rs.1000 crore every year on corporate
gifting and the culture is on the rise. Potential entrepreneurs, especially those good in public
relations, can easily get into such business. Other associated businesses in this line could be
manufacture of greeting cards (Diwali, New Year, Christmas, Valentine day, Birthday, etc.) for
various occasions.
Herbal Medicines and Skincare Products
India has the distinction of growing vast variety of herbs. Indian population of more than
a billion ensures a sufficiently large market for herbal medicines and skincare products. People,
world over, in general and in developed countries, in particular, are becoming increasingly aware
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of after-effects of allopathic medicines and synthetic skincare products. Women, in particular,
are slowly switching over from synthetic skincare products to herbal-based products. India has
an established tradition of growing and using variety of herbs. We need to go in for
commercialization of herbal-based medicines and skincare products in a big way.
Mineral Water
Even though mineral water manufacturing was started in India during the 1960s, but the
market did not pick up till 1985. During late 1980s and 1990s mineral water market in India
increased by an impressive rate of 30-40 per cent annum. Market for mineral water in India is
spreading very fast. People are becoming health conscious. We are going to enter in an era when
potable bottled water would find place in almost all general stores and it will become an
unavoidable expenditure for people at large. Statistics reveal that size of Indian Mineral water
market during 1999 was of the order of approximately Rs.800 crore. Many small-scale
entrepreneurs can find business opportunities in this fast growing market.
Paints, Enamels and Varnishes
India is presently experiencing an automobile revolution. Standard of living of the
sizeable Indian middle class is also improving at a rapid pace. Both these trends indicate an
increasing market for paints, enamels and varnishing. Industrial and household use of these
products is quite promising and much better than many other products. Manufacture of these
products in small-scale sector should therefore need to be considered as a viable business
proposition.
Organic Farming
The concept of organic farming is of very recent origin in India, Many developed
countries grow food organically. Health conscious persons prefer organically grown food. InIndia also, people are becoming increasingly health conscious. They are well aware of after
effects of food and vegetables, which are grown by making excessive use of chemical fertilizers,
pesticides and insecticides. Some companies and individual farmers have started organic farming
in India. To ensure better health for our people we need to promote organic farming in a big way.
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Our potential entrepreneurs with interest in agricultural related activities would perhaps find
good business opportunities in this area.
Music and Entertainment
Music and entertainment are required the world over. With a large number of channels in
operation and a revolution in satellite technology the music and entertainment industry has
thrown open numerous opportunities. Potential entrepreneurs should grab opportunities in the
fast developing music and entertainment industry.
Writing Instruments
Literacy rate in India is slowly improving. Some of the conventional writing and learning
materials are fast becoming obsolete. Also because of economies of scale and cheap labor
availability, we as a nation are in a position to manufacture writing instruments at affordable
prices. Now with access to better technologies and huge Indian and overseas markets, our
entrepreneurs have an opportunity to exploit this market.
Plastics
Per capita consumption of plastics in India is hardly 2-5 per cent of per capita
consumption in developed countries like the US. Use of plastics in India, both in Industries and
households, is going to pick up in coming years. In spite of ill effects of use of plastics, it is
rather impossible to manage without it. The Indian plastic market is presently experiencing a
growth rate of more than 10 per cent per annum. It provides scope for setting up small-scale
plastic processing enterprises for manufacture of variety of plastic products.
Toys
Toy manufacturing (especially stuffed toys) is a low technology based less capital
intensive and highly labor intensive industry. Superstores abroad usually source toys from China,
Korea and Hong Kong. Consumption of toys in India and abroad is increasing. In India, the toy
market grew 10-12 per cent per annum during the late 1990s. It is estimated to touch an annual
growth rate of 15 per cent soon. India has potential to manufacture cost effective toys largely for
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Indian market and also for world toy market. If China and Korea can do it why cannot we? Our
entrepreneurs need to consider toy manufacturing as a rewarding business.
Floriculture
Indian flowers are becoming increasingly popular in the world market. Flower market,
especially exports, is becoming favorable to Indian florists. Improvements in infrastructure and
transport facilities would further brighten the prospects of Indian flowers abroad. At the same
time, florists need to concentrate on domestic flower market as well.
Health-care Sector
Indias population to hospital bed ratio is a very poor compared to World Health
Organizations standards. (Indias population to hospital bed ratio is 1300: 1 against the WHO
recommended ratio of 250: 1). With the funds receding in government kitty, private sector will
be required to play major role in the health-care sector. Health-care, both in corporatized sector
(Organized sector) and also in informal sector, has potential for high growth in India.
Biotechnology
It is believed that early twenty-first century will belong to biotechnology and software in
India. In India biotechnology has just started picking up. Application of biotechnology especially
in the areas of agriculture, horticulture, sericulture, poultry, dairy and production of fruit and
vegetables will pay an important role in future. We should go for commercial application of
biotechnology in various sectors of economy wherever it is found feasible. Biotechnology would
therefore throw open many opportunities for entrepreneurs in future.
Information Technology (IT)Enabled Services
Business to Business Portal Solution (B2BPS) Services would be needed in a big way to
address the emerging needs of IT enabled services sector. IT enabled services is a US$ 180
billion business. The sector includes services like GIS digitization, medical and legal
transcription, medical billion, and insurance claim processing and archival and indexing of
records. All these, and many more services, could be provided by Indian entrepreneurs. The pool
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of smaller service providers from India can meet the needs of outsourcing from US, and other
developed countries.
Education Portals
Application of information technology to education sector has started revolutionizing the
process of education in the country. MNCs and Indian Internet companies have started setting up
education portals in the country. In days to come professional education like management,
medicines, engineering, law etc., would be taught by making extensive use of internet. Under the
new innovative and emerging concept students would study and learn educational courses both at
school and college level online, i.e., through internet. Some companies have already set up their
web-sites, which offer various courses for school level students. IT-friendly potential
entrepreneurs can look forward to getting franchise of major players in providing IT based
educational courses.
Organized Retailing
The organized retail industry business in India is expected to grow between 50-60 per
cent each year during the next few years. Given that there is beginning to be some comb lance of
competition among organized retailers in the big cities. Retailing as a business, till recently, was
confined to small-scale shopkeepers but now even large business houses have started considering
it a potential opportunity. Venture capital and bank finance is also now available for prospective
retailers. Experts in retail industry feel that retail business is truly globalization, and common
patterns are emerging. Electronic retailing is yet another emerging area. Electronic retailing is
happening more in business to business space than in the business to consumer space.
Processing, Refrigeration and Transportation of Food, Vegetables and Fruits
India has long suffered the lack of a comprehensive cold chain. A large Purdon ofagricultural and other products produced in the country perish due to the lack of a serviceable
refrigerated storage and distribution network. A detailed study conducted by the government on
the agricultural and food industry has revealed that one-third of the products are ruined due to the
lack of adequate storage and preservation facilities. Meat, poultry, fresh produce and dairy can
only be distributed within limited geography and need to be consumed in a short period. Also,
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sensitive medical requisition like vaccine and pharmaceuticals are suffering due to the lack of
refrigerated distribution. This state of affairs needs to be changed. Food and other precious
resources in our country must be preserved at all costs. The refrigeration industry would be
required to come through providing a wide range of industrial and commercial refrigeration
services that can serve the entire gamut of cold storage and refrigerated transport to retail display
and preservation units.
Cruising Business
The cruising business is gradually picking up in India. The business of cruising represents
enjoying the luxury of dining in fine restaurants, casinos, excursions to golden beaches and
exotic islands. The perception of Indians about cruising business is changing. People no more
consider cruising as meant for elderly and retirees alone. The concept of a cruise holiday is
becoming immensely popular in India. The number of Indians holidaying on cruising trips in
increasing due to enhanced awareness through better marketing and advertising by our operators,
fatter pay packets, and a growing tendency to splurge.
Courier Services
E-commerce related business is poised for exponential growth in the early 21st century.
Expansion of E-commerce in India and world over has given a boost to courier business. The
service industry is expected to grow in leaps and bounds in the near future for the simple reason
that physical delivery of goods will be primarily handled by courier services companies.
Corporate in Net business will not be in a position to support a massive network of distribution,
whose job in future will be reduced to just delivering the goods manufactured from the
manufacturers doorsteps to the consumers. Besides maintaining a large network of distributors
is expensive when even the big wigs in the industry are cutting costs. Due to these difficulties
courier companies with an elaborate network would have enough business to transact. Their
network is going to be particularly beneficial to Fast Moving Consumer Goods (FMCG)
companies who, at present, depend on a network of sales persons to make their product reach the
retail levels. If recent trends serve any indication, courier services, both in organized and
unorganized sectors ensure a promising future.
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Summer Solution Related Business Opportunities
Summer and power cuts are synonymous in India. With the advent of technology
solutions to frequent power cuts are immense. And for the times when power is regular life can
be bliss with a variety of cooling devices in the form of high tech air conditioner and coolers.
With latest state of the art technology being imbibed in these gadgets, healthy air and healthy
food are a de rigueur in todays AC and refrigerators. Silent invertors and one-pull generators are
another lot becoming an essential buys for almost every household. Depending on the demand a
variety of invertors and generators can be manufactured by small-scale entrepreneurs. Servo
voltage stabilizers online UPS, line interactive UPS, automatic voltage stabilizers, constant
voltage transformers, manual voltage regulators, isolation transformers, high voltage regulators,
high voltage break down testers, electronic air conditioner protectors, spike suppressors and
busters are the other products related to summer solutions which can easily be manufactured in
small scale units.
Efforts in India to Promote Entrepreneurship
The Indian experience suggests that difficulties in starting up businesses and handling the
pressures of entrepreneurship in the initial phases deter people from taking up entrepreneurship
as means for livelihood. The grant of licenses and policies and controls and taxations had been
cited as one of the major hurdles in the setting up and running of new businesses (Awasthi &
Sebastian, 1996; Gautam, 1979; Mokry, 1988; Sadhak, 1989; Singh, 1985). Thus,
entrepreneurship had been encouraged in India by systematic attempts at removal of state
imposed structural and regulatory roadblocks. More progressive governments had tried to make
it easy for entrepreneurs to set up businesses. The growth of Bangalore, Hyderabad as hubs for
organizations engaged in Information Technology business were direct outcomes of
governments support in form of tax holidays to start-ups and sector-region specific concessions
to start new ventures.
Second, there were attempts to make finances available to businesses. In the existing
banking paradigm it was/is not so easy to get loans for starting new ventures or expanding
current businesses. The Reserve Bank of India urged banks to consider easier lending to small
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and new businesses ("Banking not equipped to promote SMEs: RBI," 2002). The Government of
India also increased efforts in this direction. Small Enterprise Development Bill of 2003 included
guidelines for banks and other government agencies to ensure easy disbursement of loans to new
ventures (Gopalakrishnan, 2004). Subsequently, lowering of borrowing rates from the banks also
made it worth the while of entrepreneurs to run profitable business. These steps were/are being
taken in the direction of making easy finance available to entrepreneurs.
Another form of support and development of entrepreneurial talent by various institutions
came in the form of setting up training institutions for entrepreneurs. Setting up of national
institutions such as the Entrepreneurship Development Institute at Ahmadabad is indicative of
such thinking at the government level in India. Several institutions in the US, Singapore, the UK,
and India set up special cells to support technopreneurs and other innovators. These institutionsprovide basic management know how and understanding of how to start and run a business, and
also incubate new businesses till they are able to sustain themselves.
Conclusion
India has made substantive progress in putting together various regulatory mechanisms in
different sectors and has received benefits from these reforms which are giving birth to new
entrepreneurs. We have specific policies and programs in place to encourage people to become
entrepreneurs. In the market there are lots of opportunities in different areas and financial
resources like venture capital are inviting innovative ideas. There requires the creation and
maintenance of an environment that is conducive to growth of existing enterprises and would
help build up a wider base of population capable of successful entrepreneurial behavior.
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Bibliography:
Websites
1. www.emerald.com2. www.google.co.in3. www.Wikipedia.com4. www.answers.yahoo.com
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