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Entrepreneurship in India

Posted on Tuesday, Mar 20th 2007

Enterpreneurship is a critical element of a growth economy, and India is poised to unlock a Silicon Valley like entrepreneurial boom through the next 10 years. The beginnings are already in place, steps have been taken in the right direction.

I have written extensively on the topic of entrepreneurship and venture capital in India, and thought it would be a good time to summarize the various pieces.

Last summer, I started digging into the topic, and came up with my first nugget: Too Much Money, Too Few Deals, highlighting the excess capital chasing Indian startups, and the lack of fundable deals.

Around the same time, I also wrote my popular Concept Arbitrage series, which led up to the widely read Venture Capital in India article. In these, I explored what kinds of deals have been getting funded, and why. Consumer Internet turned out to be a big trend from last year, for India, while non-tech sectors like retail and real estate are also big money-making opportunities. In fact, I highlighted the retail trend in my piece about Oak Investment Partners’ India Retail Fund.

This year, as we have explored the issue of seed capital for entrepreneurship in India, the situation has got more dire, with more money going into India. This has led me to the conclusion that India Needs More Incubator Funds. I continued an exploration of the incubator fund requirements, while entrepreneur Sujai Karampuri wrote some passionate pieces on why we need technology product companies in India, and why we don’t have any.

Finally, I suggested some areas for technology entrepreneurs in India to explore as segments where new companies can be formed: SaaS, Enterprise 3.0 and web 3.0.

In summary, I am optimistic about India’s entrepeneurial potential, and look forward to tracing its developments over the coming months and years.

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I live in the US. But, I have been to India recently. I was at a electronics store, the prices for all the tech products are really high. It really annoyed me. For example at IBM Laptop was about 1 Lakh, I am not sure about the conversion.

A laptop in US costs about 1000-1500$ or even cheaper. Thats a lot less.

I really don’t know why stuff is so expensive, is it because they think the people are clueless? There will be a backlash against high prices..

Please Reply

Srinivas Wednesday, March 21, 2007 at 11:16 AM PT

There’s plenty of cheap computers available in India, as far as I know. But I don’t track IBM laptop prices, so cannot comment.

Sramana Mitra Wednesday, March 21, 2007 at 2:30 PM PT

[…] writes that India is poised to see an entrepreneurship boom in the next 10 years. She is right! There are […]

Entrepreneurship Education Takes Root in India at Orbit Change Conversations Thursday, March 22, 2007 at 12:38 AM PT

Really? The lowend is cheap I know that. I am sure the high end machines are a lot expensive then the computers in US.

Thanks for the reply.

I don’t know may be because I don’t live there. But, I lived there from when I was 1- 14yrs old. I am 17 now.

I like reading your blog thanks.

Srinivas Thursday, March 22, 2007 at 9:07 PM PT

Just came across your blog thanks to IndianEconomy.org – liked it! Look forward to reading it regularly

Aditya Thursday, April 5, 2007 at 11:00 AM PT

The second generation of successful/ semi successful small and medium businesses that got started 20 years before has a lot of potential. They know the ropes of the trade. And they possibly also have international exposure to broaden the vision.

Somehow this segment is too conservative.

The first gen entrepreneurs have too many distractions. Incubators like the ones proposed by you are good starting point.

Keep up the good work!

Balaji Sowmyanarayanan Monday, April 9, 2007 at 8:39 AM PT

[…] various recent discussions about Entrepreneurship in India, I have heard a recurring theme, that Indian culture does not encourage, nor support […]

Sramana Mitra on Strategy » Blog Archive » Bollywood Screenplays Tuesday, April 10, 2007 at 3:36 AM PT

[…] have obviously come a long way. Last summer, I did a body of research on the Indian entrepreneurship scene, as I watched huge amounts of capital finding its way to India. Through that work, I also came to […]

Early Stage Technology Entrepreneurship and Incubators in India at VentureWoods Sunday, November 18, 2007 at 11:21 AM PT

[…] have obviously come a long way. Last summer, I did a body of research on the Indian entrepreneurship scene, as I watched huge amounts of capital finding its way to India. Through that work, I also came to […]

Incubator Funds in India: Synthesis - Sramana Mitra on Strategy Sunday, November 18, 2007 at 10:46 PM PT

[…] have obviously come a long way. Last summer, I did a body of research on the Indian entrepreneurship scene, as I watched huge amounts of capital finding its way to India. Through that work, I also came to […]

Early Stage Technology Entrepreneurship and Incubators in India |Indian startups, India Business Monday, November 19, 2007 at 5:27 AM PT

entrepreneurship has been increased in a country like india as it was as compared to the early years of independence. i am impressed much by visiting this page.

varnica Thursday, December 13, 2007 at 9:57 AM PT

I am a student from china ,now study on India’s entrepreneurship education ,and you paper is very helpful .
if you have time ,please contact me,thank you

apple Friday, January 11, 2008 at 6:45 AM PT

I AM INTERESTED IN ENTREPRENEURSHIP AND I HAVE AN INTENSION TO START BUSINESS ON HOME-BASED FREELANCE WRITING AND E-TUTORING.CAN YOU PLEASE HELP ME OUT IN THIS REGARD?

RHITABRATA Friday, January 11, 2008 at 11:31 AM PT

hi Sramana

A great post.. India is sure to go through a sea-change with the entrepreneurial activities taking place in India. It will be a hub for Angel Investors and Seed funding soon.. Many organisations are working to promote entrepreneurship in India. One such organisation is PITCHINDIA (http://www.pitchindia.com)

This site might be of help to you as well as it provideds immense resources for Investors and Entrepreneurs.

Waiting to hear more from u!!!!

Akriti Thursday, January 24, 2008 at 4:41 AM PT

I have heard a lot about entrepreneurial activities taking place in India. A great step is taken by lot of some seed fund companies,VC, angel investment etc to give a kick start to all such activities. Firms like PITCHINDA (www.pitchindia.com) is providing angel investment to the Indian entrepreneurs

Jigyasa Thursday, January 31, 2008 at 11:03 PM PT

I was wondering if there are any institues in India which does research on “Entrepreneurship in Indian IT industry”?

Shweta Thursday, February 7, 2008 at 5:29 AM PT

enterpreneurship in india is a death wish..can u comment on this

uttam Sunday, March 9, 2008 at 11:01 PM PT

Now why on earth would you say that?

India is full of entrepreneurs right now, and many have done very well. In IT / ITES alone, there are 3,000 companies. Would that have been possible without entrepreneurs?

Sramana Mitra Monday, March 10, 2008 at 12:17 PM PT

India can be a good base of entrepreneurs
provided SIDBI, Nabard and IDBI join together and form a joint financial institute tpo provide financial assistance direct through District Industries Centres , DRDAs then it can beat the production better then China

Dr. Mrs. Sushma Joiya Thursday, April 24, 2008 at 7:06 AM PT

India has so much obvious growth potential and human talent, yet persistent challlenges. There has been a lot of capital looking for good deals, but I think more management talent is required in India (also in China by the way)… BTW, I would be happy to be in touch with the Chinese person studying in India.

After looking at the growing need, a few friends of mine and I have recently started a foundation to focus on the next generation of transnational entrepreneurship and innovation (see http://www.ifest.info) to link mentors and young people in India with their peers in the US, China, Japan, etc. We are planning a workshop/bootcamp for early career professionals and graduating students in India early next year, in an alliance with the UC Davis Center for Entrepreneurship and other US partners.

Other programs are in the works (International Innovation Camps, high level policy dialogue, etc.), and we at iFEST hope the time is right for building more international cooperation to support the rising generation of innovation and enterpreneurship worldwide.

Mike Saturday, May 17, 2008 at 5:49 PM PT

hi Sramana,
i read your blog it sounds quiet interesting. I am also really interested to be an entreprenuer but dont know how to start and wht to do can you help me out

Uday Saturday, July 19, 2008 at 1:22 AM PT

Integrated Congress of Women Entrepreneurs is the only organsisation in India linked to Ministry of Industries, Department of MSME, New Delhi. We are planning open a unique MSME Showroom in every District of the country to market the products manufactured by women entrepreneurs registered with District Induistries Centres.l Jorhat, Jalandhar, Ludhiana, Allahabad, Shivsagar, Teok, Dibrugarh, Mathura, Coimbatore are already having MSME Showrooms run by Integrated Congress of Women Entrepreneurs. This will positively boost up entrepreneurship amongst women of India.

Dr.Mrs.Sushma Joiya Thursday, August 28, 2008 at 3:08 AM PT

hi, iam a student, and searching for the enterprener issue and your information is so far so good for me, and for my assignment

ksk Wednesday, January 14, 2009 at 1:25 PM PT

Entrepreneurship in India is in increasing trend right now. With the current economic crisis, jobs are not available, so many freshers are venturing into businesses

brookes Thursday, February 19, 2009 at 6:55 AM PT

Great work! I really enjoyed this article! Hope to read more from you soon! :)

Josh Patrone Saturday, February 21, 2009 at 1:00 PM PT

hi!!!
The article is interesting..its of great importance in this turbulent time,when everything is so uncertain.hope to get some more good stuff like this from you.

shipra soni Tuesday, March 3, 2009 at 10:43 AM PT

You have a very quality and fancy blog.It was a lovely reading.Thanks for the post.

Yemek Tarifleri Thursday, March 12, 2009 at 3:32 AM PT

Hi Sramana ,

I am in a reasonably good job in the field of ASIC designing …. however I have recurring thoughts of starting up on my own in some related technology area . The entrepreneurship scene in this field however seems bleak in north India ( Delhi / Chandigarh ) – do you share this view ?

Ravinder Monday, April 13, 2009 at 11:32 PM PT

Wow – I found this through google and read several of your other posts – added ya to my G Reader, Keep up the good work. Looking forward to reading more each day. Mark

mark hansen Wednesday, April 29, 2009 at 6:20 PM PT

Am working a report on India’s Skill development story and landed here. A very insightful article and many things hold true even today.

Swetha Iyer Wednesday, May 13, 2009 at 10:32 PM PT

Good information. Nice site.

Rick White Sunday, July 5, 2009 at 1:14 PM PT

Thanks for sharing informations.Looking forward to more stuff.

john daily Thursday, July 9, 2009 at 7:18 PM PT

Great informations.Thanks for sharing…I keep reading.

Mark Kinch Friday, July 10, 2009 at 7:38 PM PT

Some more tips would be great as stuff does change. Any more information and experiences are appreciated.

dashton dietrick Tuesday, July 21, 2009 at 12:53 PM PT

Very nice information. Thanks for this. Is you blog have custom design? it looks good by the way.

Free Newspaper Advertising Tuesday, July 28, 2009 at 12:53 AM PT

Entrepreneurship is the key success in booming IT industry all over the world specially countries like USA, China, Far East etc now south east Asia have recognize the value of Entrepreneur and India become first country who initiate it. What we need more school and education in south east Asia for Entrepreneurship Skills building .

Gifts to Pakistan Tuesday, October 13, 2009 at 12:38 AM PT

Really like this website, this really helps and very useful.

Send Flowers to Australia Friday, November 13, 2009 at 11:40 PM PT

We have requested many times and even a long discussion took place with Shri Dinesh Rai IAS, Secretary MSME, New Delhi to establish at least one MSME Show Room in every District Trade and Industry Center by financing any young unemployed youth of that District.
It should be mannd my unemployed youths only and not by the Government Servants of KVIC, DIC or NSIC because we have seen and observed the non functioning of such Government Showrooms.

Dr.Mrs Sushma Joiya Thursday, October 14, 2010 at 1:17 AM PT

can you tell me how to source an antrepreneur. Many agencies engaged in entrepreneurship development and/or funding are facing that challenge

b n dewan Monday, May 23, 2011 at 4:08 AM PT

You need to deliver value. If you do, there are many ways of sourcing entrepreneurs. We do it successfully, and constantly. You can ask agencies who are looking for help contact Irina Patterson at 1M/1M.

Sramana Mitra Monday, May 23, 2011 at 10:42 AM PT

Entrepreneurship is sunshine for India . Good scope for agricultural entrepreneurship. Hope to read more from you

Dr. Meena Patel Saturday, March 24, 2012 at 2:01 AM PT

India is full of entrepreneurs right now, and many have done very well. In IT / ITES alone, there are 3,000 companies. Would that have been possible without entrepreneurs?

Gifts Pakistan Saturday, April 7, 2012 at 12:21 AM PT
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