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

National Knowledge Commission Government 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 Commission Government 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 Commission Government 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 Commission Government of India Key Finding  Prominent Entrepreneurial “Triggers”  Individual motivations  Socio-cultural factors  Access to Early Stage Finance  Education and Skills  Business Environment

National Knowledge Commission Government 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 Commission Government 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 Commission Government 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 Commission Government of India Findings - Skills  One in three entrepreneurs find it ‘difficult’ or ‘very difficult’ to find employees with the right skills

National Knowledge Commission Government of India Findings – Business Environment  Problems faced by entrepreneurs

National Knowledge Commission Government of India Finding – Best Practices in India

National Knowledge Commission Government 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 Commission Government 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 Commission Government 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 Commission Government 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 Commission Government of India Business Incubation  Develop and put in place a comprehensive policy to increase quantity, enhance quality and increase access to financing

National Knowledge Commission Government of India Building Synergies

National Knowledge Commission Government 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 Commission Government 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 Commission Government of India Entrepreneurship Ecosystem

National Knowledge Commission Government of India Thank You