Creating Indian Entrepreneurs

Creating Indian Entrepreneurs

A presentation by
KRG
Vice-President – TANSTIA
Director – AATHMA
At the International Conference held at
Annamalai University – Chidambaram
On 28-12-2009

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Why is the foreign countries

more prosperous than India?
• Is it because we Indians are less smart
than others?
– No, Indians are universally
acknowledged for their intelligence.
• Is it because they have greater resources?
– No, India is as much if not more rich in
natural resources.
• Then, why is countries like UK, Germany
and Canada more prosperous than India?
– Simply because they have more
entrepreneurs.
Nusserwanji Jamshedji Tata
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India
• Is India is a Developed Nation?
– No
• Is India is an under developed Nation?
– No
• Is all Indians are Rich?
– No
• How to alleviate Poverty?

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How to alleviate Poverty in

India?
• If India needs to exterminate
poverty, we have to grow
• To grow, we have to employ the
unemployed
• NASSCOM and CII have
estimated that by 2020, it needs
to create 100 million jobs
• The million-dollar question is
how to create these jobs ?
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Entrepreneurship & Poverty

Reduction
• There is growing evidence of a relationship
between entrepreneurship, economic growth and
poverty reduction
• Small, micro and medium-sized enterprises
(MSMEs) offer employment to millions of poor
people
• According to the Global Entrepreneurship
Monitor (GEM), almost 150 million people are
engaged in some form of entrepreneurial activity
• There is no doubt that entrepreneurs create jobs.

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How many jobs are to be

created?
• Similarly, in the next 10 years,
110-130 million Indian citizens
will be searching for jobs
• This includes 80-100 million
looking for their first jobs;
that's seven times Australia's
population. 

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How to create Jobs?

• Neither the Army nor the police force can absorb
such a large amount, nor can the Railways or the
government.
• They can only be absorbed by the private sector.
• The industrial set-up is expanding, but not at the
rate that can employ such large numbers.
• Is there any solution to this grave problem?
• Fortunately, YES, the answer is
entrepreneurship.
 

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Why Entrepreneurship?
• India needs entrepreneurs.
• It needs them for two reasons:
1.To capitalise on new opportunities and
2.To create wealth and new jobs.

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Brain Drain
• Over 30% of Microsoft employees are
Indians.
• The NASA relies on Indian brains for its
various missions
• Why do these people flock to the US?
– simply because the US has more
opportunities.
• What can we do to stop this self-ruining
brain drain?
– The answer is promoting entrepreneurship K.B.
Chandra
TiE
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Entrepreneurs are Wealth

creators!
• Entrepreneurs are people who turn
dreams to reality.
• They supply goods and services,
which increase the standard of living
of the entire populace substantially.
• They are wealth creators.
• This self-created wealth insulates
the economy from recession and
helps strengthen local economy.

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Benefits to the Society!!

• The benefits of entrepreneurship to
the society and the economy as a
whole are enormous
• Entrepreneurship helps in avoidance
of monopolies and cartels
• Meets the consumer satisfaction
• One of the easier ways of checking
large corporations and MNCs.
Sabir Bhatia
Founder-Hot Mail
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FDI
• An important factor influencing FDI, is
the concentration of entrepreneurship.
• FDI is directly proportional to
entrepreneurship.
• The highest contributor of FDI is the
US.
• The US also readily welcomes Indian
exports and also lists Indian companies
on American exchanges.
• No wonder NASDAQ rocks on the
beats of Ex-Infosys Chairman, NR
Narayan Murthy.

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So where do we stand?
• It's a mixed bag as usual
• We have had some big success
stories, but still a long way to go to
make entrepreneurship a way of
life
• It is not just the idea which is
required to be successful
• If India is to truly look forward, she
must ensure conditions that
encourage entrepreneurs

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Developing entrepreneurial
skills
• Most Indian start-up businesses face two skill gaps:
– Entrepreneurial (how to manage business risks,
build a team, identify and get funding) and
– functional (product development know-how,
marketing skills,etc.)"
• Make entrepreneurship as an important and integral part
of business studies.
• Indian School of Business, Hyderabad, has instituted
Wadhwani Centre for Entrepreneurial Development.
• The vision is clear and especially relevant to India —
– "to create 1,000 new businesses over the next ten years, creating
100,000 new jobs for professionals and to improve the lives of a
million people."
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What is needed?

1. Create the right environment for success

2. Ensure that entrepreneurs have access to
the right skills
3. Ensure that entrepreneurs have access to
“smart” capital
4. Enable networking and exchange

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What are some of the things that

Indian entrepreneurs are getting
right? Where are they failing?
• Indian entrepreneurs are
bright, committed, hardworking
and persevering. 
• The weak areas seem to be
risk taking ability, team
building and opportunity
spotting. Sarath Babu
The IDLI Boy
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The Future of
Entrepreneurship
• Both the Central & State Governments are taking interest in
promoting entrepreneurship.
• Individuals are encouraged to form new businesses and
provided government support as tax incentives, buildings,
roads, and a communication system
• Every state government should develop its own innovative
industrial strategies for fostering entrepreneurial activity and
timely development of the technology
• The states should have their own state-sponsored venture
funds

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Society’s Support
• This support is critical in providing both
motivation and public support.
• A major factor in the development of this societal
approval is the media.
• The media should play a powerful and
constructive role by reporting on the general
entrepreneurial spirit in the country highlighting
specific success cases of this spirit in operation.

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Intrapreneurship
• Finally, large companies should show an
interest in their special form of
entrepreneurship-intrapreneurship-in the
future.
• These companies will be increasingly
interested in capitalizing on their Research
& Development in the hyper competitive
business environment today.

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Decision to start an
entrepreneurial venture
• The decision to start an entrepreneurial
venture consists of several sequential
steps
– (1) the decision to leave a present career or
lifestyle.
– (2) the decision that an entrepreneurial
venture is desirable ; and
– (3) the decision that both external and internal
factors make new venture creation possible.

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“PUSH” – “PULL” Influences

• There are both pushing and pulling influences active in
the decision to leave a present career:
– the “push” of job dissatisfaction or even layoff, and
– the “pull” toward entrepreneurship of seeing an unfilled
need in the market place.
• The desirability of starting one’s own company is
strongly influenced by
– culture,
– sub-culture,
– family,
– teachers, and
– peers.
• Beyond the stage of seeing entrepreneurship as a “a
good idea”, the potential entrepreneur must possess or
acquire the necessary education, management skills,
and financial resources for launching the venture.

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Importance of
Entrepreneurship Studies
• The study of entrepreneurship has
relevance today, not only because it
helps entrepreneurs better fulfill their
personal needs but because of the
economic contribution of the new
ventures.
• The study of entrepreneurship and
education of potential entrepreneurs
are essential parts of any attempt to
strengthen this link so essential to a
country’s economic well-being.

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Accountability
• I am happy to note that the Commerce
Department Annamalai University is taking
fervent efforts to inculcate Entrepreneurship
amongst its students
• Glad to note that more than 61 Scholars have
submitted their presentation to-day.
• It shows the greater interest evinced by the
Teaching community on “Entrepreneurship”
• So, the Accountability for creating more
Entrepreneurs is on “YOU”

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Create Leaders – Make them

Entrepreneurs
• Don’t produce job seekers – Create Job
Providers
• Make them pro-active
• Infuse confidence and Self Pride
• Don’t create just a ..Leader!

•
Create world class L
EADERS!
(Vaiyath Thalaimai koll – Bharathi)

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Any Questions?
• Thank you Mentors!
• KR. Gnanasambandan
– Vice President – TANSTIA
– Director - AATHMA
• 74, Paramuthevar Nagar,
• Narayanapuram West, Madurai-625 014.
• Talk to me: 94437 11495
• Write to me: trainingataathma@gmail.com
• krg@aathmaacademy.com

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