India -2nd among all nations in Total[/i][/b]
Entrepreneurship [/i][/b]
Professionals living in global cities, such as New Delhi, New York, Paris, Rio, and Shanghai, have more in common with one another, in lifestyle and values, than they do with rural citizens in their respective nations. 70% of them live in rural isolation, largely disconnected from the benefits of their nation’s fast-paced economic growth. India’s government has limited ability to bring about real change in the country’s villages. Private entrepreneurs might well be more effective.
India was 2nd among all nations in Total Entrepreneurship Activity as per the Global Entrepreneurship Monitor Report of 2002. [/i][/b]
India is ninth in the Global Entrepreneurship Monitor (GEM) survey of entrepreneurial countries. It is highest among 28 countries in Necessity based entrepreneurship, while 5th from the lowest in opportunity based entrepreneurship.[/i][/b][/i][/b]
Indians possess entrepreneurial capacity but the society and government are not very encouraging towards entrepreneurship. The physical infrastructure needs to be improved. Social Attitudes, lack of capital, inadequate physical infrastructure and lack of government support are major factors of hindrance.
India is the fifth largest economy in the world and has the third largest GDP in the entire continent of Asia. It is also the second largest among emerging nations. The liberalization of the economy in the 1990s has paved the way for a huge number of people to become entrepreneurs.[/i][/b][/i][/b]
There are few very important things about entrepreneurship that came out of this journey
Entrepreneurship is all about taking the first step and implementing them.
Take Risks, evaluate and learn.
Scalability
Focus on developing assets for the company.
Provide quality products and services to the customer.
Learn to use internet.
Select Associates smartly.
Issues in the Current Entrepreneurial Framework[/b][/b]
Finance: Access to credit is considered to be one of the key problems faced by entrepreneurs in India. This problem is particularly acute at the start-up stage, where bank finance is hard to obtain. Despite new sources of finance such as venture capital, angel funding and private equity becoming increasingly popular, institutional finance is still not able to meet the current entrepreneurial demands.
Regulation and governance: An entrepreneur has to deal with a host of regulatory and compliance issues. These include registering one’s business, obtaining government clearances and licenses, paying taxes and complying with labour regulations. Cumbersome paperwork, long delays and red tapism involved in such transactions create unnecessary burdens for entrepreneurs, constraining their productivity and their ability to do business. As seen in the Doing Business 2008 rankings, India performs poorly in these indicators. A study investigating the effect of regulation on entrepreneurship using the GEM dataset shows India to be having one of the worst regulatory indices. Moreover, lack of clarity on information relating to legal and procedural aspects of starting an enterprise, as well as those relating to clearances, licenses and government schemes further aggravates the problem.
India’s Ranking in Doing Business 2008
Starting a Business -111
Dealing with Licenses -134
Employing Workers -85
Registering Property -112
Paying Taxes -165
Trading Across Borders- 79
Enforcing Contracts -177
Closing a Business -137 (Source: Doing Business, World Bank, 2008)
There are ample opportunities in small businesses in India and such opportunities will transform India in the coming future. For such transformation to happen there needs to be support both at the governmental and societal level. For the government it is important to realize that the goal of small business owners will be to remain self-employed. Such people may not need financial assistance but they will need marketing and legal assistance in order to sustain themselves. Practical and cost effective programs need to be developed to address their needs because self-employed people will represent an important segment in economic revitalization. Entrepreneurship development is the key factor to fight against unemployment, poverty and to prepare ourselves for globalization in order to achieve overall Indian economic-progress.
Entrepreneurship [/i][/b]
Professionals living in global cities, such as New Delhi, New York, Paris, Rio, and Shanghai, have more in common with one another, in lifestyle and values, than they do with rural citizens in their respective nations. 70% of them live in rural isolation, largely disconnected from the benefits of their nation’s fast-paced economic growth. India’s government has limited ability to bring about real change in the country’s villages. Private entrepreneurs might well be more effective.
India was 2nd among all nations in Total Entrepreneurship Activity as per the Global Entrepreneurship Monitor Report of 2002. [/i][/b]
India is ninth in the Global Entrepreneurship Monitor (GEM) survey of entrepreneurial countries. It is highest among 28 countries in Necessity based entrepreneurship, while 5th from the lowest in opportunity based entrepreneurship.[/i][/b][/i][/b]
Indians possess entrepreneurial capacity but the society and government are not very encouraging towards entrepreneurship. The physical infrastructure needs to be improved. Social Attitudes, lack of capital, inadequate physical infrastructure and lack of government support are major factors of hindrance.
India is the fifth largest economy in the world and has the third largest GDP in the entire continent of Asia. It is also the second largest among emerging nations. The liberalization of the economy in the 1990s has paved the way for a huge number of people to become entrepreneurs.[/i][/b][/i][/b]
There are few very important things about entrepreneurship that came out of this journey
Entrepreneurship is all about taking the first step and implementing them.
Take Risks, evaluate and learn.
Scalability
Focus on developing assets for the company.
Provide quality products and services to the customer.
Learn to use internet.
Select Associates smartly.
Issues in the Current Entrepreneurial Framework[/b][/b]
Finance: Access to credit is considered to be one of the key problems faced by entrepreneurs in India. This problem is particularly acute at the start-up stage, where bank finance is hard to obtain. Despite new sources of finance such as venture capital, angel funding and private equity becoming increasingly popular, institutional finance is still not able to meet the current entrepreneurial demands.
Regulation and governance: An entrepreneur has to deal with a host of regulatory and compliance issues. These include registering one’s business, obtaining government clearances and licenses, paying taxes and complying with labour regulations. Cumbersome paperwork, long delays and red tapism involved in such transactions create unnecessary burdens for entrepreneurs, constraining their productivity and their ability to do business. As seen in the Doing Business 2008 rankings, India performs poorly in these indicators. A study investigating the effect of regulation on entrepreneurship using the GEM dataset shows India to be having one of the worst regulatory indices. Moreover, lack of clarity on information relating to legal and procedural aspects of starting an enterprise, as well as those relating to clearances, licenses and government schemes further aggravates the problem.
India’s Ranking in Doing Business 2008
Starting a Business -111
Dealing with Licenses -134
Employing Workers -85
Registering Property -112
Paying Taxes -165
Trading Across Borders- 79
Enforcing Contracts -177
Closing a Business -137 (Source: Doing Business, World Bank, 2008)
There are ample opportunities in small businesses in India and such opportunities will transform India in the coming future. For such transformation to happen there needs to be support both at the governmental and societal level. For the government it is important to realize that the goal of small business owners will be to remain self-employed. Such people may not need financial assistance but they will need marketing and legal assistance in order to sustain themselves. Practical and cost effective programs need to be developed to address their needs because self-employed people will represent an important segment in economic revitalization. Entrepreneurship development is the key factor to fight against unemployment, poverty and to prepare ourselves for globalization in order to achieve overall Indian economic-progress.