| The world has started accepting India as a major player in global economics. Analyst and |
| Industry veterans prophesize India to be a major power of the future. This is still a distant |
| dream because India has a humungous youth population of 300 million with just 100 |
| million jobs in her pocket. The million dollar question is that which industry has got the |
| nerves to absorb a workforce of this scale. The only rational answer to this problem is |
| entrepreneurship which in itself comes with a new set of challenges. |
| DO WE HAVE INNOVATION AND ENTREPRENEURSHIP IN OUR BLOOD? |
| Globally India is conceived as a country with aversion to innovation and |
| entrepreneurship. The condition aggravates with the fact that we traditionally have had a |
| miniscule amount of investments in our R&D facilities. In the year 2007-08, we had only |
| 0.93% of GNP being spent on R&D with the lion’s share going into strategic (military) |
| development. This can be further substantiated by the fact that on one hand the R&D |
| expenditure of all Indian industries taken together is less than that of a Single Japanese |
| company - Sony while on the other hand, 12% of the world’s total R&D expenditure in |
| 2005 was done by China. |
| A comforting fact is that Indians have a tendency of self-employment which was revealed |
| in the 62nd round of NSSO’s report on employment showing a national average of 254 |
| per 1000. |
| A quick glance at history enforces the thought that even Indians are adept entrepreneurs. |
| Karsanbhai’s Nirma, Munjal’s hero, Iyengar’s TVS group, Dhirubhai’s reliance, Kiran |
| Shaw’s Biocon, Bharti’s Airtel are few examples out of the inexhaustible list of Indians |
| who have carved a niche in the golden temple of fame. |
| UNLEASHING THE LATENT POTENTIAL |
| Opportunities Galore |
| Advantage India: The Demographic Dividend Way |
| This colossal population of over 1.15 billion not only poses huge challenges for the |
| country but at the same time opens the golden door of opportunity. A third of India's |
| population was below 15 years of age in 2000 and close to 20 per cent was in the 15-24 |
| age group. It is expected that in 2020, the average Indian will be only 29 years old, |
| compared with 37 in China and the US and 48 in Japan. This ensures that India in no way |
| can fall short of manpower in the next few decades and this can sustain India’s growth |
| story in the long run. |
| Unsaturated Indian Markets |
| World over companies are eyeing Indian markets because of high domestic demand and a |
| robust growth supplementing it. This gives an opportunity to entrepreneurs for exploring |
| the latent needs of the Indian customers. Launch of Kinetic scooters at the time when no |
| Indian would have ever imagined a non-steel, self-start, gearless scooter, companies such |
| as Hi Design rubbing shoulders with global majors like Gucci and Prada are few |
| examples to learn from. |
| World Is Equally Flat For “Everyone” |
| Over and over again the issue of dumping by foreign companies comes up, but crying |
| wolf is not the solution. With umpteen bilateral and multilateral agreements in place, |
| along with the opening up of economies, it is a shot in the arm for entrepreneurs’ world |
| over. |
| Indian “Baniya” Is Alive And Kicking |
| According to a McKinsey report, Indian families are already saving too much to support |
| small businesses directly. Comparing India with South Korea in 2005, both had an almost |
| identical national-savings-to-GDP ratio of about 33 percent. Yet, in Korea's case, |
| households accounted for just a fifth of the overall rate, compared with 69 percent in |
| India. Gross domestic savings in the year ending March 31, 2008 were almost 35 percent |
| of GDP. That is almost 10 percentage points higher than in 2003. Add a small amount of |
| capital absorbed through a current-account deficit, estimated to be less than 2 percent of |
| GDP, and India has enough fuel for an economic growth of 8-9 percent. With more |
| productive use of capital, even 10 percent is feasible. These savings under expert |
| guidance and mentorship can work wonders for aspiring and budding entrepreneurs. |
| Global Downturn: Not For India – Time To Explore New Avenues |
| India is making headlines due to its partial immunity from the global meltdown. It is true |
| that although there is slowdown in a few sectors, majority of the industries have shown a |
| promising profit which is remarkable. Layoffs and cost cutting is a global phenomenon |
| but India is largely unaffected. A report by Hewitt states that over 60% of the companies |
| are still hiring and 9 out of 10 companies are still promoting. |
| There is a silver lining to every cloud, is as true as ever. Globally Indians are being sent |
| back due to lack of employment opportunities but the catch is that these Indians are |
| flushed with funds and have valuable experience. This is a perfect mix to start new |
| ventures. |
| which can be a great asset for any new company. “Recession can lead to Indian |
| progression”, is the verdict. |
| Challenges Await the Entrepreneurship Bandwagon: Blueprint for Achieving Excellence |
| The Indian Curse Of “Babudom” |
| The world “Doing business report 2009” published by World Bank and International |
| Finance Corporation ranks India at 122nd out of 181 countries whereas even countries |
| like Pakistan stand at 77th. The sorry story of bureaucracy and red-tapism still haunt the |
| Indian businessmen. |
| “Single Window Clearance” can act as a booster for novice entrepreneurs. Implementing |
| such process in itself is a herculean task for the government as this practice has been |
| nurtured by the bureaucrats for decades. However, this is the only way out if we want to |
| progress. |
| Credit Crunch Coming Home: Promoting Alternate Sources Of Finance |
| The global downturn has led to drying up of funds through stock market and International |
| sources. The situation is further aggravated by the dollar outflow and vigorous efforts by |
| the Reserve Bank of India to defend the rupee by buying out dollars (Forex reserves fell |
| by approximately $5.8 billion in just two weeks of early September). |
| We have few organizations that have come to the rescue such as Indian Venture capital |
| association (partnering with Thompson, Tie, Indian Angel network etc.), NEXUS India, |
| Sequoia India etc. Government has to participate actively in the initiative by promoting |
| cooperatives and banks for providing credits. |
| Vicious Organizational Inefficiencies: What About Corporate Mentoring? |
| Indian firms are well known for their inefficient processes. Upgrading to advanced |
| technology to compete in the global arena is imperative. An eye opener can be the Indian |
| cement industry which is outmoded and highly inefficient as India’s per capita production |
| of 115 kilograms per year lags the world average of over 250 kilograms and China’s |
| production of more than 450 kilograms per person. |
| A viable but unconventional way could be mentoring by successful corporate and MNC’s |
| who have already proved their mettle in the global arena. They are people who have |
| proved their business acumen and they would definitely look for their benefit in this also. |
| Giving redeemable Corporate Credits by the Indian government can be the way out. |
| Companies would also benefit by promoting their brands through such initiatives. |
| Labor, Labor Everywhere, Not A Skill To Employ |
| There are more than 5000 Industrial Training Institutes (ITI) in India. However, the |
| quality of training is rather uneven. These ITIs produce 700,000 technicians each year. |
| Improving their skill level would be a very powerful channel of advancing India’s |
| technical/manufacturing capabilities. India is unable to compete against countries like |
| China in manufacturing world class products because of shortage of skilled technicians. |
| The institutes have bottlenecks like poor infrastructure, outdated curriculum, less |
| qualified instructors and limited interaction with the industry. |
| Skilled labor can be a huge advantage for entrepreneurs to be competitive. These |
| entrepreneurs are generally not in a position to train employees and then use them as it is |
| a huge cost and a deterrent for their growth. |
| We have world class educational institutions such as the IIM’s, IIT’s etc. The question is |
| that can we progress with a weak foundation? There are companies that train their own |
| workforce and if these companies join hands, with government’s support and guidance |
| from successful educational institutions, they can reach new acme of success. |
| Infrastructure, The Gordian Knot |
| India’s incessant infrastructural woes are yet another roadblock on the path to success. |
| Overstressed power grids, erratic power supply, shoddy roads acute water shortage etc |
| has severely impaired the growth of our country. |
| We can at least simulate if not emulate various other nations who have world class |
| infrastructure. We bemoan about paucity of resources but even some elementary |
| mathematics can answer this. According to a conservative estimate about Rs 1.23 crore a |
| day to run Parliament and during the Budget session, 47 hours were lost in the Lok |
| Sabha. Another 40 hours were lost in the Rajya Sabha which adds up to about Rs 17.61 |
| crore down the drain. This amount is good enough to finance 4-5 small businesses and |
| who knows if they would have turned into another Reliance which contributes |
| approximately 3% to India’s GDP. The crux lies in optimization of resources. |
| Fear Is In The Air, Instilling Confidence Is The Key |
| With industrial goliaths being wiped out due to the global turmoil, an aura of fear has |
| crept in. People are worried due to uncertainty in the markets. It is time when the |
| government should give a fillip to the plans of aspiring entrepreneurs by incentivizing |
| their plans, giving better insurance schemes and cheaper credit. |
| The Cardinal Rule: Promoting New Ventures While Fostering Our SME’s |
| A small seed is tomorrow’s big tree. Even companies like Infosys, Reliance, Oberoi |
| Hotels etc had a modest start. It’s a well accepted fact that SME play a vital role in any |
| country’s growth. The contribution of SMEs to GDP in 2003 ranged from 60.0 percent in |
| China, 57.0 percent in Germany and 55.3 percent in Japan whereas, as per Assocham’s |
| report India is still slogging around 17% and trying to reach 25% by 2012. Continuous |
| support for technological upgradation, credit availability and export promotion by the |
| government can be a great support. |
| where new companies are promoted within their premises (Silicon Valley, similarly, |
| promoted by Stanford University). This idea could be implemented on a larger scale |
| along with Industrial associations. |
| Developing of self-help groups (Cluster development) by NGO’s like SEWA, BASIX etc |
| has initiated a mass movement of self employment through microfinance. There are |
| organizations like Shri Mahila Grah Udyog which started off with a borrowed sum of Rs. |
| 80 and has a turnover of Rs. 470 Crores which includes Rs. 24 Crores of Exports. This |
| showcases the potential of microfinance. |
| Glorifying The Corporate Tycoons |
| Indians have succumbed to the Nehruvian ideologies that profits are bad and |
| entrepreneurs can’t be leaders. For decades students have been taught of politicians and |
| freedom fighters as leaders but why can’t entrepreneurs like M S Oberoi, Ambani, |
| Narayanmurthy or for that matter Steve Jobs and Warren Buffett serve as ideals for |
| juveniles. |
| FINALLY, WE HAVE MILES TO GO BEFORE WE SLEEP… |
| It is apparent that India has a long way to go before making a mark on the world map as a |
| developed and prosperous nation. The dream can be realized by improving the quality of |
| life of its masses which can only be done by generating employment for them. The |
| seemingly insatiable demand for jobs can only be met by promoting entrepreneurial |
| activities by giving the right platform to entrepreneurs with the help of organizations such |
| as NEN, The Indus Entrepreneurs etc. It is pretty evident that Indians have launched new |
| ventures with flair in the past and they still possess the fire. Opportunities are in |
| abundance and the country is plush with resources. |
| The formidable challenge lies in optimizing resources and overcoming the hurdles to not |
| only join the league of successful and developed nations but rather set an example for |
| other developing nations. |
