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Written by The Financial Express | Updated: Jan 1 2010, 02:07am hrs
This paper* takes a critical look at the available quantitative evidence on the growth of knowledge- or technology-based entrepreneurship in India:

Our study has sought to highlight a number of positive indicators as far as technology-based entrepreneurship in India is concerned in the post-liberalised regime. Following Gupta (2001), the state has to do four facilitating factors for technology-based entrepreneurship to be sustained. They are: 1) creating the right environment for successentrepreneurs should find it easy to start a business; 2) ensuring that entrepreneurs have access to the right skills. According to Gupta (2001) most Indian start-up businesses face two skill gaps: entrepreneurial (how to manage business risks, build a team, identify, and get funding) and functional (product development know-how, marketing skills etc); 3) ensuring that entrepreneurs have access to risk capital: for a long time, Indian entrepreneurs have had little access to capital; and 4) enabling networking and exchange: entrepreneurs learn from experiencetheirs and that of others. Much of the success of Indians in Silicon Valley is attributed to the experience, sharing and support. Given the positive contribution of knowledge-intensive entrepreneurship and given the ongoing financial crisis, which would turn some of the facilitating factors into strong constraints, one cannot de-emphasise the catalytic role that the government has to play in growing this activity.

* Sunil Mani; The Growth of Knowledge Intensive Entrepreneurship in India; 1991-2007, Working paper series 2009-051, United Nations University, November 2009