The Extinct Indian Entrepreneur

Shrikant Patil writes: “Red Herring released a list of 20 entrepreneurs under the age of 35. There was one Indian Anurag Dikshit but not a single Indian from India. My take on this issue is the explosion in the job market with Multi-nationals and Indian companies on a hiring spree. You have to be in some sense a radical to ignore the comfort of getting a job and jump into starting a company. Another personal observation, even though there are a lot of VCs in India there is an acute shortage of angel investors in India. VCs pretend to be angel investors and waste the precious time of many budding entrepreneurs asking questions and documentation to be provided that is actually required in the first round of fund raising. Many who pursue a business in India are the ones who get funded by family or informal channels. Many of the businesses are just filling up for infrastructure bottlenecks rather than building new products or services. Banks also provide loans only if you can provide collateral, so the ones that can borrow money are ones that have some property or have money. So our nationalized and private banks will only lend money to those that have money not innovative ideas. I really call upon high networth individuals with good management experience to allocate some money to pure angel investing and mentoring young entrepreneurs. Instead of putting all their money in fixed deposits or pushing up the valuation of established businesses in the stock market or fuelling the irrational real estate boom. In Pune lot of the social discussions are around real estate just like Silicon Valley was abuzz with tech stacks in 97-99 boom. So if you are young, with a good idea, no high networth relative, no personal collateral you might as well take up a job and make the Indian entrepreneur a rare species possibly extinct.”

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.