Entrepreneurship National Knowledge Commission 19 th January, 2009 New Delhi

1. EntrepreneurshipNational Knowledge Commission19th January, 2009New Delhi National Knowledge Commission 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 • 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