National Knowledge CommissionGovernment of India
Entrepreneurship
National Knowledge Commission19th January, 2009
New Delhi
National Knowledge CommissionGovernment of India
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
National Knowledge CommissionGovernment of India
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
National Knowledge CommissionGovernment of India
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
National Knowledge CommissionGovernment of India
Key Finding
Prominent Entrepreneurial “Triggers” Individual motivations Socio-cultural factors Access to Early Stage Finance Education and Skills Business Environment
National Knowledge CommissionGovernment of India
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
National Knowledge CommissionGovernment of India
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”
National Knowledge CommissionGovernment of India
Findings – Finance Majority self-financed – 63% Access to bank finance: Very difficult at start-up stage,
comparatively easier at growth stage
National Knowledge CommissionGovernment of India
Findings - Skills
One in three entrepreneurs find it ‘difficult’ or ‘very difficult’ to find employees with the right skills
National Knowledge CommissionGovernment of India
Findings – Business Environment
Problems faced by entrepreneurs
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Finding – Best Practices in India
National Knowledge CommissionGovernment of 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
National Knowledge CommissionGovernment of India
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
National Knowledge CommissionGovernment of India
‘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
National Knowledge CommissionGovernment of India
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)
National Knowledge CommissionGovernment of India
Business Incubation
Develop and put in place a comprehensive policy to increase quantity, enhance quality and increase access to financing
National Knowledge CommissionGovernment of India
Building Synergies
National Knowledge CommissionGovernment of India
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
National Knowledge CommissionGovernment of India
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
National Knowledge CommissionGovernment of India
Entrepreneurship Ecosystem
National Knowledge CommissionGovernment of India
Thank You