How do Entrepreneurs contribute to India's Business Ecosystem


By

Dr. Vinay M. Agrawal
Executive Director
Indian School of Business Management and Administration (ISBM)
 


Who is an entrepreneur?

In today's context we hear a lot about entrepreneur and entrepreneur management. Numerous scholars have variousdefinitionsfor them but to put it in simple terms, the following points must be taken into consideration when explaining who an entrepreneur is-



1. Entrepreneurs take risks
2. They are involved in the process of decision making
3. They are always prepared to lead and provide support and guidance where necessary
4.  Thinking outside the box comes naturally to them

An entrepreneur runs a business and derives knowledge and experience from all the risks and rewards that come with overseeing a  business.  They are commonly seen as a leader and innovator of new ideas and processes.

If we compare the Indian economy to a bus, the people driving thebus are the entrepreneurs. What is the role of entrepreneurs in today's modern business world?While India strives towards  becoming a super poweramong first world countries such as the US, Canada and the UK, what will lead us to achieve this status?



A. The Indian economyis the primary factory–The service sector has given rise to the growth of the Indian economy in the recent times. The growth rate in the service sector has been very rapidbecause of which the Gross Domestic Product (GDP) has risen, giving a major boost to the Indian economy.

B. Better Lifestyle – Due to the economic growth and increase in spending capacity which is one of the perks of the growth in employment rates, people are leading a far superior lifestyle than they were previously able to.

C. Technological advancements– The world is traveling in a time machine, where the traditional use of mobile phones is now a basicnecessity serving its purpose by supporting and making people's lives easier and work life better with optimum utilization of these technological advancements. It is a blessing for the business world and economic growth.

D. Better education system – Curiosity is a wick in the candle of learning. There is no good teacher than a curious learner. India gives encourages its citizens to indulge in and learn through arefined system ofeducation.Thus, leading the world of education. Innovative thinkers have led to creating a quality education system with authenticity in producing the best professionals who can make a difference and making our world a better place. We stand tall with regard to the qualitative method of learning.Various business management and administration courses are taught at institutes like Indian School of Business Management and Administration (ISBM).

Indian business strategies have changed over time. We can differentiate in themethods of these processes, from running a business to taking high-stake risks that are extreme. An Entrepreneur is an innovative thinker who strives to succeed in his primary goal of generating income and making a difference in society. This in turn makes them stand out in acrowd. With the goal of generating higher incomes, there comes a risk of sailing through the highs and lows. An entrepreneur has to strategically contemplate and evaluate business plans. The difference is noticeable in the traditional ways of planning, organizing, controlling, decision-making, risk-taking factors of an entrepreneurship.
Indian business ecosystem – During the post liberalization period of 1991, India was introduced to significant policy shifts in the economy, with an aim of making the Indian economy market-oriented and enlarges the scope of private and foreign investments.



'Economic Liberalization of 1991 - Prime Minister NarasimhaRao, along with his finance minister Manmohan Singh, initiated the economic liberalization of 1991. The reforms did away with the Licence Raj (2), reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of foreign direct investment (3) in many sectors. Since then, the thrust of liberalization has remained the same. By the turn of the 21st century, India had progressed towards a free-market economy, with a substantial reduction in centralized control of the economy and increased financial liberalization. This has been accompanied by increases in life expectancy, literacy rates and food security, although urban residents have benefited more than rural residents, with investments made Indian counterparts started following foreign business strategies and implementing in the free-market economies.'

All these lead to Indian economy advances and came forth contributingsecurity in terms of–

1. Monetary advances– Direct foreign investments encourage the Indian economy and thus made the system more free, bringing down the inflation rates.

2. Technological– With advancements in the thought process behind running a successful and well-established business, technology plays a vital role. Adoption of the latest inventions in technology has made it crucial, and sped up the processes involved in operating a business.

3. Innovation - Necessity leads to invention, and innovation is the underlying plan of these inventions.

4. Change of attitude–Previouslythere was little or no support from the Government for entrepreneurs.Now various schemes are coming up which make secured business strategies, encouraging Indian entrepreneurs to implement and bring in their innovative ideas to the market front.



5. Start-ups – The Prime Minister, ShriNarendraModi initiated the Action Plan of Start-Up India. This initiative primarily aims at nurturing entrepreneurship and innovation in the ecosystem. The basic principle of this plan is promoting the idea of a nation as a job-creator, rather than a nation of job-seeker.

Bringing in this change, the outcome can closely be gauged with few success stories that are bound to bring change -

1. Kolkata-based Green Clean Media Works generates Rs 1 lakh revenue per month by installing Adbins in residential complexes

2. LIFT Academy – A corporate veteran's effort to make uninformed workers skilled employees



3. Indian markets being extremely price sensitive, Flipkart overhauls an American e-commerce company Amazon, by its rapid growth over a very less time

TCS, Infosys, Nasscom are few examples of these start-ups

'India startup ecosystem: 3,000+ startups now, 10,000 by 2020. The first set of data shows the sheer volume of India's tech ecosystem.  With 3,100 startups, and 800 more every year, this is the 4th largest country after the US and China. The positioning of India as a startup country is also thought of in the light of other famous startup scenes such as the US, Israel, Singapore.' Full report on Nasscom's Website.

However, the government needs to nurture and encourage an even stronger custom of entrepreneurship for small business start-ups to come out on the forefront in the world market, setting funding regulations and managing economy more efficiently.



The young and dynamic businesses are getting involved in market up in market, giving rise to the significance of India as a well-backed nation of strong enterprises.

References:

(1) Services Sector Growth Rate in India GDP
http://business.mapsofindia.com/india-gdp/sectorwise/services-sector-growth-rate.html

(2) Licence Raj Wikipedia

(3) foreign direct investment Wikipedia

(4) Nation of Job Creator http://startupindia.gov.in/actionplan.php

(5) Social enterprises story - https://social.yourstory.com/category/socialenterprise/

(6) India startup ecosystem data - http://www.innovationiseverywhere.com/the-state-of-india-startup-ecosystem-here-comes-the-growth-a nd-10000-startups/

(7) Nasscom's website
 


Dr. Vinay M. Agrawal
Executive Director
Indian School of Business Management and Administration (ISBM)
 

Source: E-mail August 3, 2016

          

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