Before I touch upon the topic, I think its apt to write a little about who qualifies as an entrepreneur.
An entrepreneur is - someone who has an “idea”, works out a business strategy, gets the strategy approved by financiers, secures the dough, gets a office, sets up a business and living beings (staff), revels in skyrocketing profits, sells the brainchild for no less than some crores and enjoys life thereafter! :-)
But does this happen in reality? I m afraid I have to say “not always ” though there are some success stories.
Anyone can have an idea but it takes something special - An “out of the box” idea coupled with determination to become an entrepreneur.
What stops me? I would love to start my own business but do I have the time to even think of an idea? Even if I did, I don’t have enough money and say, I managed funding, I would probably not see any income for years and I might be scorned by my parents and peers, probably be labeled as a “failure”. So I guess... the fear of “losing” is enough to shatter my dreams of being an entrepreneur.
Kingshuk Nag
St. Xavier's, Kolkata
Sunday, March 18, 2007
Friday, March 2, 2007
The Role of Indian Entrepreneurs
I would like to discuss the role of entrepreneurship in the Indian economy, and what needs to be done to so entrepreneurs can play an optimal role.
I believe that the entrepreneurs in India play a different role from thier counterparts in an advanced economy. For instance, entrepreneurs in an advanced economy enable early stage innovation, and we have seen this in limited measure in India.
FAILURE TO PLAY OPTIMAL ROLE
1. In India entrepreneurs are not pushing the technological envelope
2. They do not focus on different customer segments
3. They prefer to diversify into new business rather than expand
4. Small units in India lack the scale to acquire and use advanced technologies
5. Startup capital required by the entrepreneurs might be high, and not as easy to access
Why is this so?
In India entrepreneurs operate small units in domains that in the developed world would be dominated by large companies. For e.g. retail.
Several factors that encourage entrepreneurs to start sub-scale units and to avoid growth are
1. Govt. reservations for small units
2. Tax system
3. Inefficient use of capital
4. Acquiring premises instead of renting them
5. Purchase of equipment instead of leasing them
6. Production of goods & services instead of sourcing lower-cost options
7. Defects in the regulatory and legal systems
Countries like India have to get the big picture right and fix the pain points in the system. At this juncture India needs to reform the tax system, create a more favorable environment for entrepreneurs to think of large scale operations, and provide infrastructure that will support such growth. The only way to discover what is and isn't critical is through a close, systematic study of the current situation, followed by recommendations to the government on what can be done to ensure we create a favourable environment.
SANGITA SADHU, ST. XAVIER’S KOLKATA
I believe that the entrepreneurs in India play a different role from thier counterparts in an advanced economy. For instance, entrepreneurs in an advanced economy enable early stage innovation, and we have seen this in limited measure in India.
FAILURE TO PLAY OPTIMAL ROLE
1. In India entrepreneurs are not pushing the technological envelope
2. They do not focus on different customer segments
3. They prefer to diversify into new business rather than expand
4. Small units in India lack the scale to acquire and use advanced technologies
5. Startup capital required by the entrepreneurs might be high, and not as easy to access
Why is this so?
In India entrepreneurs operate small units in domains that in the developed world would be dominated by large companies. For e.g. retail.
Several factors that encourage entrepreneurs to start sub-scale units and to avoid growth are
1. Govt. reservations for small units
2. Tax system
3. Inefficient use of capital
4. Acquiring premises instead of renting them
5. Purchase of equipment instead of leasing them
6. Production of goods & services instead of sourcing lower-cost options
7. Defects in the regulatory and legal systems
Countries like India have to get the big picture right and fix the pain points in the system. At this juncture India needs to reform the tax system, create a more favorable environment for entrepreneurs to think of large scale operations, and provide infrastructure that will support such growth. The only way to discover what is and isn't critical is through a close, systematic study of the current situation, followed by recommendations to the government on what can be done to ensure we create a favourable environment.
SANGITA SADHU, ST. XAVIER’S KOLKATA
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