Entrepreneurs: Need of India

Definitions 

It is all about to identifying gaps and problem in the existing system and offering effective, profitable solutions to plug the same. As per Peter F. Drucker the objective of any business enterprise is ‘’serving - customers - profitably’’. For example

Huge mass of online data, growing continuously and people trying to find something useful = Problems.

Search Engines = Solutions

Google = Precise Solutions

Adwords and Adsense = Profitable Solutions

Concept of Risk

Risk is the effect of uncertainty on objectives. Uncertainty includes events which may or may not happen. Here are some points for the life of an entrepreneur.

(a) Taking risk is an integral part of being an entrepreneur.

(b) Entrepreneur takes risk while managers and administrators expect a structured environment.

(c) Uncertainty of can be three types

Risk – It is measurable statistically

 Ambiguity – It is hard to measure statistically.

True Uncertainty – Impossible to predict statistically.

Creative Destruction Theory 

Schumpeter (1883-1950) was an Austrian American economist who gives the theory of ‘Creative Destruction’. He said that the success of capitalism will lead to corporatism and creation of hostile elite. But the gale of this theory will bring superior innovations to replace in whole or impart inferior products that already exist. Like Facebook and Whatsapp.

This theory will be responsible for long term economic growth. Entrepreneur will be the catalyst for business change. As per Schumpeter existing technology can be intelligently modified to create whole new products and services

Characteristics 

Entrepreneur can alone act in team or in group. They can exhibit both positive and negative trades. Positive trades are : Clearly define goal, Mission above self, Innovation mindset, Solution finder, Team player.

Negative trades are : Excessive aggression, Blind to other needs, Too focused on the goals.

Need of India 

In 2015, PM Modi has launched ‘’Startup India, Standup India’’. Each of 1.25 lacs bank branches should find atleast one Dalit or Adivasi entrepreneurs and at least one woman entrepreneur each. It relates to our Indian Economy directly as follows:

(a) We will soon be the biggest nation in the world with majority being youth.

(b) As of now approximately 10 lac youth entering in the workforce each month which implies that 1.2 crores every year.

(c) Services sector is our prime but it is very poor employer of the people.

(d) India manufacturing sector is very small.

(e) Formal skills development is still in its infancy.

(f) The four numbers magic of Indian Economy that is

     65(Agriculture%)- 35 (Non- Agri)

                                    15 (Organized Sector)

                                    85 (Unorganized Sector)

Moral of the story- India needs more Entrepreneurs !!!!!

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