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

2. 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

3. 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

4. Methodology One-on-one interviews Review of policy literature
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

5. 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

6. 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

7. 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

8. 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

9. 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

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

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

12. 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

13. New Institutional Mechanisms
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)
National Knowledge Commission
Government of India

14. Facilitate Information Flows
‘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
National Knowledge Commission
Government of India

15. 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

16. 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

17. Building Synergies
National Knowledge Commission
Government of India

18. 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

19. 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

20. Entrepreneurship Ecosystem
National Knowledge Commission
Government of India

21. Thank You
National Knowledge Commission
Government of India