24 January 2020

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India Goes Enterprising Day by Day

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Our lives are changing. New needs are felt with the growing living standard. The demand for services to cater to these needs is also on a rise. Recognising this fundamental premise, many common men thought it necessary to offer these professional services and have turned into entrepreneurs. For instance, the utility of differently abled people for a particular function, who are otherwise rejected by conventional companies, is realised by an entrepreneur.

With the determination of social service added to professional aspect he may start a venture which can employ this class of people and earn profit.

The post-recession period has seen a remarkable rise of entrepreneurial ventures in India. Students of top B-schools with sharp business acumen who were offered mediocre salary have started their own business. Besides, the others who want to shoulder grave responsibility in a business prefer not to join big corporate houses where new entrants are just pin in a whole. Small firms are experience creators. On the basis of these experiences, large firms select employees.

Considering the employment generation capability of entrepreneurial ventures, Government has also extended a helping hand by starting the Credit Guarantee Scheme under which SIDBI has lifted the loan amount from 20 lakhs to1 crore. The Associate Professor of Entrepreneurship, XIM, Bhubaneswar, Rajeev Roy says, “It’s easier for entrepreneurs to get the loan after being rated by Small medium entrepreneur rating agency (SMERA).” This rating agency rates the organisation after keeping a track of its performance and growth for a year. A rating from SMERA serves as an assurance of the organisation’s profitability for the banks. As an incentive, other banks have also started lending more funds with affordable interest rates. During the slowdown, banks find it financially safe to fund the smaller banks which unlike large farms, apply for lesser loan amount, so that even the business dwindles, less money is llost.

But angel networks which are one of the vital supporting nerves for the start-ups and entrepreneurs need to expand. Angel network is an individual or group of resourceful people who invest in small and start-up projects. Along with money, the new organisations can also bank upon the fertile experience of these successful entrepreneurs.  There is a greater need for angel funding to help create more start-ups because unlike venture capital their aim is to start a business.

Angel funding is easier to identify as there terms and conditions are negotiable. On the other hand, venture capitalists seek high growth companies and provide money at a stage when the company has already settled and registered profit. Moreover, in a country like India, there is a cry for both social and economical development in every field. Therefore the role of angel networking is all the more glorified as they support various ventures. But venture capitalists concentrate on high-profile and high-growth sectors. But the Associate Professor of Entrepreneurship, XIM, Bhubaneswar, Rajeev Roy, deems it equally necessary to invest ones own money along with bank loans. He adds, “In India readiness to risk money is not at par with readiness to risk time and energy.”

The legal protection of every business occupies a vantage position. According to World Bank Survey, India was ranked 125 out of 181 countries as a favorable business destination. But India’s rank slide to 180 in terms of legal protection in the business. As pointed out by Rajeev Roy, Associate Professor of Entrepreneurship, XIM, Bhubaneswar, entrepreneurial ventures already have an inherent risk. What adds to it is the inefficient code of legal protection that deters many aspiring starters to venture in to this field.”

Small farms have a multiplier effect. The profit and employment generated by investing less money in a small firm is much more than investing more money in large firms. Although not conclusively framed, but, entrepreneurial ventures and start-ups have a direct correlation with the country’s economy. Simple examples are the angel organisations that have put a smile on the faces of uncountable villagers in remote villages that have provided viable economical platform to them.


Last Updated ( Monday, 05 July 2010 18:46 )  

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