National Knowledge Commission Government of India Entrepreneurship National Knowledge Commission 19 th January, 2009 New Delhi

National Knowledge CommissionGovernment of India

Entrepreneurship

National Knowledge Commission19th January, 2009

New Delhi


Defining Entrepreneurship

Key components:

Professional application of knowledge, skills and competencies and/or of monetizing a new idea

By an individual or a set of people By launching an enterprise de novo or diversifying from an

existing one (distinct from self-employment as in a profession/trade)

To pursue growth while generating wealth, employment and social good


Why Entrepreneurship

Growing significance and visible impact in India Wealth Creation Employment Generation Critical to growth and development

NKC study undertaken to explore facilitating triggers


Methodology

One-on-one interviews 155 entrepreneurs 45 other stakeholders – Finance (including VCs and Angels),

Education, Incubation, Chambers, Associations etc From: Pune, Kolkata, Ahmedabad, Chennai, Hyderabad,

Bangalore, others (NCR, Mumbai)

Review of policy literature Personal narratives from entrepreneurial icons


Key Finding

Prominent Entrepreneurial “Triggers” Individual motivations Socio-cultural factors Access to Early Stage Finance Education and Skills Business Environment


Findings – Motivation Key Motivations - “Independence”, “market opportunity”, “family

background”, “new idea”, “challenge”, “dream desire”

99% of entrepreneurs did not want to be in a routine job


Findings – Socio-cultural Factors

Crucial indicator: 74% of entrepreneurs received family support

Variations in family support according to Region – Ahmedabad most supportive

Gender as a factor: Two-thirds of female entrepreneurs said “gender did not make any difference”


Findings – Finance Majority self-financed – 63% Access to bank finance: Very difficult at start-up stage,

comparatively easier at growth stage


Findings - Skills

One in three entrepreneurs find it ‘difficult’ or ‘very difficult’ to find employees with the right skills


Findings – Business Environment

Problems faced by entrepreneurs


Finding – Best Practices in India


Supportive Business Environment

Make it easier to conduct business by consolidating and simplifying processes, improving delivery time and curbing corrupt practices

Make Single Window Clearance meaningful

Introduce a Single Composite Application Form for all clearances

Introduce a Single Unique Company Number for company, tax and social security registrations


Set up commercial courts to deal with commercial disputes and to speed up contract enforcement

Introduce Limited Liability Partnerships (LLPs)

Establish a Global Technology Acquisition Fund for Intellectual Property (IP)

New Institutional Mechanisms


‘One stop shops’, web based portals and information handbooks

Publicize risk management tools

Increase awareness of the Credit Guarantee Scheme and

Central Plan Scheme Monitoring System

Facilitate Information Flows


Access to Finance

Incentives for Seed Capital Funding:

Establish a secondary market for smaller companies, which provides exit options to the seed stage investor and value addition for the entrepreneur

Create new instruments and institutions for start-up funding, involving multiple stakeholders (public and private)


Business Incubation

Develop and put in place a comprehensive policy to increase quantity, enhance quality and increase access to financing


Building Synergies


Education

Enact Uniform legislation for publicly funded research: Grant IP rights to universities/research centers Entitle inventor to a share of the royalties from

commercialization

Enable PhDs/researchers to set up commercial entities

Encourage universities/research organizations to establish commercial enterprises based on new inventions


Vocational Education and Training

Modernize Vocational Education and Training/Skill Development by formalizing:

Performance based training and assessment Innovative delivery models Incentives to states Skills in spoken and written English as a priority A transparent industry based certification system A transparent rating system for VET institutions


Entrepreneurship Ecosystem


Thank You

Documents

National Knowledge Commission Government of India Entrepreneurship National Knowledge Commission 19 th January, 2009 New Delhi