(I have quoted from the article with my comments being in a slightly bigger font)
Bangalore: India known
for its talent tank, most of them who work for big organizations like NASA,
Microsoft and the tech bellwethers and manufacturing giants it has produced
over the years. Though India has seen many entrepreneurial ventures, it is
still the worst for entrepreneurship in Asia, according to a Gallup poll. The
reasons behind this are pointed to be widespread corruption, government
hurdles, lack of funding and poor technology and training, which results in low efficiency and high
start-up costs in India. So what are the major factors
that let down India in this poll? Let’s take a sneak peak
The so-called “talent tank” has been created nor because of but in spite
of the education system. Other than a
miniscule number of educational institutions quality education is unknown in
India. You start with a headline and the
cite organisations like NASA, Microsoft, etc. People working in these “tech
bellwethers” were never interested in entrepreneurship in the first place. So, please don’t cite them as examples. The reason why you see so many people in
these organisations is because of the population and the high number of
graduates being churned out by degree factories (I refuse to call them
universities) each year.
The number that
represents those working in big US organisations is a very tiny percentage of
the Indian graduate (I refuse to use the word educated) community which is but
a microscopic percentage of the nation’s population.
Widespread corruption, government hurdles and other factors mentioned
are facts that haven’t deterred entrepreneurs from starting and running very
successful businesses. The only country
in the World having a greater percentage of its population engaged in
entrepreneurship activities is Thailand.
This makes India the nation with the largest population of entrepreneurs
in the World. Gallup should be looking
at the United States where the number of entrepreneurs are actually coming down
and ask why that is happening. Maybe
corrective measures need to be taken there.
Willingness
to take the risk of running a business is not a common trait among Indians
Qualities required in entrepreneurs such as business thinking, optimism and persistence are common among Indians. But the most important part which is the willingness to take the risk of running a business is rare.
Qualities required in entrepreneurs such as business thinking, optimism and persistence are common among Indians. But the most important part which is the willingness to take the risk of running a business is rare.
As I stated
earlier, India has more entrepreneurs than any other country in the World. An aversion to risk would not have lead to
this.
The report said, “More than 60% of the Indian
population possesses personality traits that are crucial for success as an
entrepreneur - such as business thinking (69%), optimism (66%), and persistence
(65%) - which suggests a wealth of entrepreneurial capacity. However, willingness to take the risk of
running a business is not a common trait among a majority of Indians.”
Isn’t that so contradictory? I just need to repeat what I said in the
previous paragraph.
Reliable support from honest and efficient
government institutions is essential
According to the poll, around 46 percent of Indians say the government is the biggest hindrance in starting a business. More than seventy percent believed corruption is widespread in the government. More than sixty percent agreed that corruption is widespread in business. This view was particularly high among current business owners (72 percent) and those planning to start a business in the next 12 months (80 percent).
According to the poll, around 46 percent of Indians say the government is the biggest hindrance in starting a business. More than seventy percent believed corruption is widespread in the government. More than sixty percent agreed that corruption is widespread in business. This view was particularly high among current business owners (72 percent) and those planning to start a business in the next 12 months (80 percent).
Who exactly has
been polled? Tell me, how many of those
polled wanted to be entrepreneurs in the first place? While corruption in government is a fact that
can’t be wished away, there is much more corruption in private and
non-government public life. Has this
stopped the entrepreneurial class? Has
it deterred determined start-ups? The
fact that “corruption is widespread in business” has spurred rather than held
back a lot of would-be entrepreneurs.
Entrepreneurs need more diversified, localized
funding at the initial stage
The most helpful factor in becoming an entrepreneur in India is access to financial support. The study said, “The key problem for entrepreneurs seems to be less about the availability of funding and more about finding the right type of funding.
The most helpful factor in becoming an entrepreneur in India is access to financial support. The study said, “The key problem for entrepreneurs seems to be less about the availability of funding and more about finding the right type of funding.
Again another great
fallacy. I know of communities that fund
start-ups for fellow community members almost at the drop of a hat. People who don’t belong to these communities
also have access to funds. Sometimes, it
may take a little time to get to know about these sources. Please tell me about a viable venture that
has not taken off because of lack of funds.
The majority of existing venture capital funds for start-ups are focused on export-oriented IT or mobile solutions.” There
are only very few venture capital funds facilitating startups that offer the
high-demand products and services in the healthcare or energy sectors in
India's massive domestic market.
This is perhaps the
only factual statement in this study.
However, funds are available of every sector.
Foreign investors need to understand India's
business culture
Another problem with funding is that the foreign investors pay no attention to India's unique market demands, talent supply and business culture. They often make wrong assumptions based on what has worked well in their home countries.
Additionally, in Indian startups there is a lack of angel funding and investor participation in companies’ management. Venture capitalists in India prefer to only finance expansion of existing businesses, rather than funding a start-up from scratch.
Another problem with funding is that the foreign investors pay no attention to India's unique market demands, talent supply and business culture. They often make wrong assumptions based on what has worked well in their home countries.
Additionally, in Indian startups there is a lack of angel funding and investor participation in companies’ management. Venture capitalists in India prefer to only finance expansion of existing businesses, rather than funding a start-up from scratch.
What exactly are
the pollsters trying to say in this statement?
Tell me, where can you do business without understanding the culture of
that place?
Indian entrepreneurs need more access to training
and mentorship
The report also said that only 22 percent of Indians who plan to start their business in the next 12 months have access to formal or informal training to start a business - which is much lower than the Asia average of 44 percent. Also there are not many entrepreneurs who offer their success stories for the young entrepreneurs to learn.
The report also said that only 22 percent of Indians who plan to start their business in the next 12 months have access to formal or informal training to start a business - which is much lower than the Asia average of 44 percent. Also there are not many entrepreneurs who offer their success stories for the young entrepreneurs to learn.
Almost every
management institute has a so-called entrepreneurship cell. The problem is that people manning them are
not capable of any kind of assistance.
Tell me, which entrepreneurship venture has been stopped because those
who wanted to start it lacked training?
Finding trusted partners is another big problem
According to the survey, only 16 percent of Indians say that a non-relative can be a trusted business partner. Also there is a lack of judicial infrastructure to protect the trusting relationship between entrepreneurs and business partners or between entrepreneurs and customers.
According to the survey, only 16 percent of Indians say that a non-relative can be a trusted business partner. Also there is a lack of judicial infrastructure to protect the trusting relationship between entrepreneurs and business partners or between entrepreneurs and customers.
A great fallacy to
conclude.
Click here to read the original article
http://www.siliconindia.com/news/startups/India-Rated-Worst-Asian-Country-for-Entrepreneurship-6-Reasons-Say-Why-nid-129624-cid-100.html?utm_campaign=Newsletter&utm_medium=Email&utm_source=r2
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