Entrepreneurs - why India needs more and in which areas?

There are many reasons why India needs more entrepreneurs and this is an attempt to understand a few of them.

When the Constitution of India speaks about self-reliance it starts with a reference to the country and then recognizes that it has to percolate to the individual level. Entrepreneurship is the surest way to self-reliance, because even though one is subject to market conditions including competition as an entrepreneur, one is still economically independent to take certain risks with regard to one’s occupation, which luxury one can ill-afford as an employee working for a master. It makes the individual more productive because entrepreneurship teaches her/him not to sit around and wait for things to happen, rather it goads the person to be pro-active. This is borne out by the working style of many individuals who have proved themselves to be worthy of emulation in business.

Many talented people are exploited by their employers, which kills the spark of creativity in the individual, causing negative energy. Effectively, it is the system that is stifling the individual. If a talented person chooses to be an entrepreneur instead, s/he can enjoy better freedom and fruits at work. Such an enjoyable experience creates a passion for work and the individual can become a fine example for the next generation to emulate. This of course is a general truth applicable universally and individual well-being is welcome in every society as the prerequisite to build a healthy, happy and productive community.

Through entrepreneurship, not only does the individual entrepreneur thrive, s/he also provides employment to a few others. This is a very important takeaway for the economy and is unfailingly mentioned especially when the MSME sector is discussed. Thus the entrepreneur is directly helping the Government in creating more jobs and building the nation, hence s/he needs all the support from the Government. Irrespective of the effectiveness of the administration, entrepreneurship is the tool with which the people can help themselves.

For India to hold its own in the global competitive market, entrepreneurship has to thrive. Entrepreneurs are constantly looking out for ‘better’ ways of doing things because there is a scarce resource to be saved such as power, raw material etc., or an asset to be earned, like the goodwill of a satisfied customer, for whom a cost saving could be achieved. This particular aspect makes entrepreneurs to be innovative, and innovation is what keeps a business ahead in the race.

The Indus Valley Civilization is a fine example of organized social living that is studied and referred to even today on various pretexts. Such an example could not have sustained itself had it not been supported by a systematic education, followed by training in skills, which form the foundation for an individual to choose and pursue an avocation that can be economically productive. While the various occupations of those times – including agriculture – were certainly pursued in an organized fashion, it can be construed that the size of those organizations were smaller, making way for a greater degree of entrepreneurship among people.

Ancient India comprised many such river-side settlements which were predominantly agrarian, followed by similar societies native to other geographical features be it the forests, hills, sea-shores, deserts and the like. All of these resulted in a diverse mosaic of occupations and trades which made for a very interesting mix of interactions across the country. Be it barter or a currency-based trade, this is proof enough that India has always been entrepreneurial. All the communities had to constantly explore how they could contribute to the economy in order to claim their place in the society. So in a way we are only seeking to further a tradition that has always existed.

Does India need more? Yes, because India is more today, in terms of the population and the strength it brings, if we were to park aside the associated challenges for the present.

Population can be a curse if we do not learn how to manage it or it can be a blessing if we indeed know how to handle it. There is frequent mention of what is called the ‘demographic dividend’ that India shall continue to enjoy for the next 3 decades or so, which means that the youngsters in the overall population will outnumber older people. Hence it is clear India will be in focus as a global provider of manpower – is there a better time than this for India to promote entrepreneurship so that her sons and daughters can indeed make her rich, rather than enriching a foreign country?

What are the areas in which more entrepreneurs are required? This will depend on two broad factors, (a) what the micro community needs and (b) what the macro community needs.

Let us look a little deeper. By micro community we may refer to our immediate surroundings which present a ready market. For instance, agricultural pockets are always served by a town which predominantly functions as a trading center where the farmers can bring their produce to sell and in turn purchase their requirements from. One could operate as an entrepreneur or a trader in such a set-up. As an entrepreneur, one could concentrate on the specific requirements of the farming community, such as tools, implements, equipment and others. This is similar to locating one’s business unit close to a manufacturing hub or zone wherein a specific type of product is being made – for instance home appliances, irrigation pump sets and others. This approach works favorably for micro and small businesses. With its roots in agriculture and owing to the heritage of community living that fosters transfer & adaptation of skills within smaller regions, helping them to develop a uniqueness that works well while marketing the products in a wider area, India should look at this favorably. However this will work well for most things Indian, while it may not be sufficient for many things global, meaning the standards demanded by multinational companies would be different and more stringent, putting it beyond the ordinary means of the individual (or even the community of) artisan(s). This would make the macro community relevant for global trade.

By macro community we may refer to the larger industry spread across geographies including the whole world. To serve this effectively, one would need a deeper understanding of the economy, markets & trends, hence a certain level of education would come in handy for the entrepreneur to find her/his feet. Moreover there is also the likelihood of entire industries going redundant as technologies evolve and global concerns change (for instance, the push for ‘green’ practices), hence this is also a capital-intensive area. However a fairly stable structure can perhaps be evolved by understanding how the different layers are stacked.

At the base of it all is agriculture. Individuals and corporates have now started looking at agriculture as a sustainable industry that can do with improvement as also efforts at conservation. This means, as urbanization continues unbridled and rural areas morph into suburbs of metropolitan cities, the food security of the nation is consistently and rapidly coming under threat. To counter this, a structured and scientific approach to agriculture has become necessary. Hence agriculture as a means to serve the macro community would be the first industry to look at.

This will be followed by manufacturing, which supports and feeds agriculture to start with, followed by the other needs of the macro community. Manufacturing thus becomes an important link and component in the overall economy. It will be followed closely by the services industry which reaches the agricultural and industrial outputs to the larger market, provides considerable employment and keeps the wheel turning.

In terms of allocating resources (read ‘investment’) it would make sense to invest more in areas which can be sustained over a longer period of time, while newly developing areas also need a share of this investment. Hence entrepreneurs have to keep an ear to the ground and manage the investments in such a way that they do not lose their shirt for having invested heavily in technology that had a short shelf life.