New Generation Start-ups in India What Lessons Can We Learn from the Past?

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "New Generation Start-ups in India What Lessons Can We Learn from the Past?"

Transcription

1 New Generation Start-ups in India What Lessons Can We Learn from the Past? M H Bala Subrahmanya An increasing number of new generation start-ups in the technology/knowledge-intensive industries have created something of an euphoria in major cities of India. This paper discusses the salient features of the start-up ecosystem that has emerged in our country, its adequacy for start-up promotion, and the measures needed to strengthen this. As a prelude, the paper traces the origin and phases of start-up growth in India, and its employment contribution, relative to the organised sector. The paper concludes with an emphasis on the need for a steady increase in new generation start-ups as a means of productive employment generation, economic transformation and growth. M H Bala Subrahmanya is Chairman, Department of Management Studies, Indian Institute of Science Bangalore Introduction Of late, technology entrepreneurship leading to high growth technology start-ups is assuming increasing importance the world over as a key to economic development. This is primarily attributed to the recent development of start-up ecosystem flowering all over the world. Historically, high growth start-ups have emerged primarily from a couple of start-up ecosystems, particularly Silicon Valley and Boston in the United States (US), but this trend appears to have reached its end. Along with a global explosion of entrepreneurship, there has been an explosion of new start-up ecosystems around the world (Start-up Genome 2012). Start-ups, generated due to technology-based entrepreneurship and known as new technology ventures (NTV) can have significant positive effects on employment, and could rejuvenate industries with disruptive technologies (Song et al 2008). Start-ups can contribute to structural change by introducing new knowledge-intensive products and services (OECD 2013). Of late, India has been recognised, as one of the potential sources of hi-tech start-ups in the global economy (Gai and Joffe 2013). Within India, its Silicon Valley, Bengaluru is considered to have one of the best ecosystems for start-ups in the world (Start-up Genome 2012). It is also considered one of the nine International Start-up Hubs outside the US (Pullen 2013). About a decade back, India was considered one of the dynamic adopters of technologies and Bengaluru was considered one of the 46 Global Hubs of Technological Innovation in the world (UNDP 2001). Today, India in general, and Bengaluru in particular is characterised by the presence of a growing population of young technocrats who are the potential sources of start-ups through NTVs. The growing potential for start-ups should augur well for the Indian economy because new venture creation has been statistically linked to both job creation and regional development (Acs and Armington 2006). However it is important to understand its flip side as well. Start-ups have been observed to have a limited survival rate (Song et al 2008). Creating a start-up involves a considerable degree of uncertainty regarding its future. More often, start-ups are created on a small scale with limited resources. They often face large and experienced competitors, powerful suppliers, sceptical customers and scarce resources (Subrahmanya 2010). Therefore, their ability to withstand sustained losses is usually very limited, and as different researchers have observed, start-ups have a high failure rate relative to established firms (Hannan and Freeman 1984; march 21, 2015 vol l no 12 EPW Economic & Political Weekly

2 2 The What and Why of Start-ups A start-up is, in general, defined as a new venture which has no previous history of operations. Such new ventures suffer from the liability of newness derived from the fact that they (new ventures) are unfamiliar and without precedent (Stinchcombe 1965; Baum 1996; Certo 2003). In terms of age, they are age-zero firms or infants (less than one-year old) (Kane 2010). A start-up means creating a new business, which stands alone, and is not tied to other organisations, except in SPECIAL ARTICLE Hay et al 1993; Robinson 1998). According to Barringer, Jones and Neubaum (2005), of the estimated 7,00,000 new ventures started each year in the US, only 3.5% grow sufficiently to evolve into large firms. The most important predictors of start-up survival and growth identified include the entrepreneurial characteristics, resources, strategy, and organisational structure and systems (Gilbert, McDougall and Audretsch 2006). These are largely firm-level influencers. Another important but external influencer of start-up survival and growth is a start-up s geographical location (Folta, Cooper and Baik 2006). This is because start-ups are highly dependent on the local environment for resources needed to sustain operations (Romanelli and Schoonhoven 2001). As there are inequalities in the availability of resources in different geographical locations, a start-up s geographic location has strong implications for its survival as well as growth (Glibert, McDougall and Audretsch 2006). Further, the regional perspective is particularly relevant in terms of policy, since measures that aim at stimulating new business formation are in most cases directed towards regions more than industries (Fritsch and Noseleit 2013). All these indicate that it is the strength of the regional ecosystem, which can nurture and promote start-ups, which would determine the rate of emergence as well as the rate of success of start-ups in different economies. Of late, start-ups have attracted the attention of Indian policymakers. The Inter-Ministerial Committee for Micro, Small and Medium Enterprises (MSME) has come out with a comprehensive list of recommendations for the promotion of start-ups in the Indian economy (Ministry of MSMEs 2013). In this the normal course of trading. It does not mean that the idea is necessarily new, it is only the vehicle which is set up to exploit it (Stokes 1995). They do not include existing enterprises which are acquired by new management or inherited by younger generations from the older ones, and they do not include spin-offs where a large firm has a control, directly or remotely. They do not include franchises of any form. The scope of a start-up can vary significantly in line with the objectives of the founder/s, linked to their willingness and ability to invest in the enterprise. The level of risk taken by the founder/s can range from virtually nothing to highly significant personal, financial and time investment. This investment can be made by an individual on their own, as the sole owner of the new venture, or it can be shared with others, who are either directly involved as equal partners, or less committed but still investing money, or time, in initiating the venture. Thus, a start-up may emerge as an individual proprietorship or partnership or as a private limited company or even as a cooperative enterprise (Stokes 1995). The word start-up may be new but start-ups are not new to the Indian economy, as much as to the global economy. Historically, start-ups have emerged for a variety of reasons/ objectives. Broadly, they can be classified under five heads: (i) as a means of livelihood, (ii) due to policy support/inducements, (iii) in response to the needs of large firms, (iv) understanding the wider market opportunities, and (v) due to innovative ideas based on knowledge acquired and experience gained, over a period of time. However, these objectives might overlap in most cases, and therefore, they cannot be treated as watertight compartments. context, it is important to understand the evolution of start-ups in the Indian economy, its different growth Figure 1: Possible Routes for Start-up Emergence in India Start-up Routes phases, and its current scenario. Further, it is appropriate to examine the necessity or adequacy of proposed support system for the promotion of Traditional Industries and Technology/Knowledge-Intensive start-ups, to ensure that they will be Modern Industries and Services Services Industries and Services able to make a significant difference to job creation and economic growth. This paper makes an attempt towards that end. At the outset, it is important to understand what do we mean by Traditional Start-ups Startups Modern Start-ups Startups New GenerationStart-ups Startups start-ups? Why do they emerge? Cottage/Household / Unregistered Medium- Micro- Small-Scale Scale Individual Partnership Private And in what form, generally, can Industries or Workshops or Scale enterprises Handicraft Enterprises Enterprises Proprietorship Firms Limited Artisans Artisan Workshops Enterprises Firms Companies they emerge? Given the above, start-ups can emerge in both rural and urban areas, from time to time. They can spring up in (i) traditional manufacturing industries and services, (ii) modern manufacturing industries and services, or (iii) technology/ knowledge intensive industries and services. Thus, in an emerging economy like India, start-ups have three parallel tracks for emergence (Figure 1). In traditional manufacturing industries, they had emerged and continue to emerge as (i) cottage industries/household industries/handicraft artisans, which Economic & Political Weekly EPW march 21, 2015 vol l no 12 57

3 are run exclusively based on household labour and thus employed no hired labour, and (ii) unregistered workshops or artisan workshops, which hired labour. The latter is an extension of the former and is likely to involve a larger scale of production relative to the former. In pre-independent India, at the beginning of the 19th century, even urban industry was mainly in the nature of handicrafts, the chief industry being textile handicrafts (Gadgil 1972). In modern manufacturing industries and services, promoted since independence, start-ups can emerge as microenterprises or small-scale enterprises or medium-scale enterprises (together known as the MSME sector), which are determined based on the scale of investment. In technology/knowledge intensive industries and services, start-ups are generally coming up as proprietorship or partnership firms or as private limited companies, based on the nature of ownership. [It is important to note that an enterprise in the MSME sector is also classified in terms of nature of ownership, and similarly an enterprise in the technology/knowledge-intensive sector can be classified as a micro/small/medium enterprise based on its scale of investment.] With this backdrop, it is appropriate to examine the different phases in the evolution of start-ups in India. 3 Start-ups in India: Origin and Phases To understand the current status of start-ups in India, it is necessary to ascertain its origin in terms of its earliest form and its economic contribution in terms of employment, the different phases of its evolution, and the factors which facilitated them. Broadly, the evolution and growth of start-ups and their contribution to the Indian economy can be identified under three phases, over a period of time. 3.1 Household Industries/Own-Account Enterprises Historically speaking, it was the cottage industries, which were start-ups in their earliest form, which led to the diversification of traditional economies from agriculture to industry and services. It comprised village industries such as smiths, shoemakers, garment-makers, handicrafts, masons, carpenters, builders, various crop processing activities and so on, and the subsistence-level off-farm activities of peasant households. Their primary function was to provide rudimentary inputs and processing services to agriculture and to cater to the non-food needs of the rural population (Anderson 1982). This was the first phase of industrialisation, known as proto-industrialisation, which was supported by a putting-out system, among others, in which cottage industries comprising rural handicrafts and artisans thrived (Mendels 1972). These cottage industries sprang up in India as well as elsewhere spontaneously and largely in response to market conditions and population growth. Only some crude forms of rural moneylenders [or urban merchant entrepreneurs, as in the case of Europe (Mendels 1972)] would have played a positive role in facilitating its emergence. Cottage industries played a decisive role in rural economic diversification by generating much needed non-farm employment. However, industrial revolution gave a death blow to these cottage industries 58 through the demise of putting-out system and factory industrialisation began. This held good for advanced countries like the United Kingdom (UK), and other parts of Europe. Even for developing countries, it was observed that with economic growth, rise in income levels and expansion of rural markets, household industries tend to decline, unregistered workshops tend to grow, eventually leading to factory sector growth (Anderson 1982). In India, this kind of transformation was observed implicitly in the context of Karnataka in the 1980s (Subrahmanya 1993). But, at the same time, cottage/household industries continued to play an important role, particularly in rural India as many of them have become ancestral professions over a period of time. Further, putting-out systems, which facilitated the continuation of household industries, thrived in India in some regions even in the 1980s (Subrahmanya 1993). With the introduction of the Economic Census in 1977, household industries have been identified as Own account enterprises (OAEs) (CSO 2001). There is no formal registration for OAEs and they can emerge conveniently in any household across the country. The only source of ascertaining the magnitude of OAEs and their employment contribution today is the Economic Census, which is conducted periodically. What is significant to note is that OAEs keep emerging in the Indian economy even now. The growth of nonagricultural OAEs, in terms of number of enterprises and employment between 1998 and 2005, is presented in Table 1. The number of nonagricultural OAEs has gone Table 1: Non-Agricultural Own Account Enterprises, to Year Number Total of OAEs Employment ,82,72,847 2,68,86, ,18,07,829 2,78,93,191 (2.56) (0.53) Figures in bracket given the percentages. Figures in parentheses are CAGR over the previous period. Source: Central Statistics Office (2001, 2008). up from more than 182 lakh in 1998 to more than 218 lakh in 2005 (a compound average growth rate (CAGR) of 2.56%). The total employment generated by the non-agricultural OAEs increased marginally from about lakh in 1998 to about lakh in 2005 (a CAGR of 0.53%). Thus, along with India s economic growth, non-agricultural OAEs, which represent traditional industries and services, have also grown from strength to strength. If the number of non-agricultural OAEs and employment are increasing over time, this is due to two factors: (i) Continuity of ancestral professions by families, in the absence of more lucrative alternative employment opportunities, and (ii) emergence of new OAEs (in the form of start-ups) as a means of employment generation. This could be attributed to (i) a lack of inclusive economic growth, and (ii) unabated population growth over time, particularly lower-income household populations characterised by low levels of education. Thus the major source of entrepreneurship for OAEs is poor-income, less-educated households across the country. Therefore, OAEs primarily represent livelihood based entrepreneurship. Today they have become such a formidable economic force that its employment of lakh (in 2005) has exceeded the total organised sector employment of lakh (in 2005) (Ministry of Finance 2013). march 21, 2015 vol l no 12 EPW Economic & Political Weekly

4 How to transform the OAEs into the organised sector has remained a major challenge to our policymakers. 3.2 Modern Small-scale Industries The second phase of start-up growth began with India s independence, more precisely in the late 1950s and after. The Government of India formed an exclusive Small Scale Industries Board (SSIB) to promote modern small-scale industries (SSI) in the country, along with five other boards to promote traditional industries such as handlooms, handicrafts, coir, sericulture, and khadi and village industries, from the 1950s onwards (Planning Commission 1985). Exclusive institutional infrastructure and policies have been formulated over the period to protect and promote SSIs (Subrahmanya 1998). Thus policy interventions at the national, regional and local levels have been conspicuous by their presence to promote this sector (DCSSI 2002). The growth of SSI due to the regular emergence of start-ups has been a significant feature Table 2: SSI Growth and Start-up of India s small-scale industrialisation. As a result, they Emergence in India, to Year Number Number of Start-ups of SSI are able to contribute increasingly in terms of employment, (in Lakh) (in Lakh) production and exports. It is estimated that in terms of value, the sector contributes about 45% of the manufacturing output and 40% of total exports of the country (Ministry of MSMEs 2012). The annual start-up emergence and the cumulative number of SSI enterprises from to are presented in Table 2. The rate of emergence of start-ups has steadily increased in the era of globalisation since Source: Kasturi and Bala Subrahmanya (2014). The entrepreneurship for SSIs emerged from different social categories (Ministry of MSMEs 2013). In terms of the educational background of entrepreneurs, there is evidence to show that it ranges from minimum school education on the one hand, to PhDs in engineering/management, on the other, comprising Class 10 pass-outs, college dropouts, diploma holders, technical and non-technical graduates and postgraduates (Subrahmanya et al 2001). Given the vast institutional network for the promotion of SSIs across the country, from national to regional and subregional levels, some of these start-ups might owe their origin to this exclusive support system created over a period of time. Further, most of these enterprises would have benefited from one policy promoted institution or the other, by availing support varying from mere information, to institutional finance, subsidy, government procurement, technology, price preference, subcontracting assistance, raw material imports, procurement of machinery on lease, subsidised infrastructural inputs, industrial sheds, technology upgrades, or even manufacturing of SPECIAL ARTICLE products reserved exclusively for SSI manufacturing. Therefore, this may be broadly called policy induced/sponsored entrepreneurship. The modern SSI sector employed 295 lakh persons in , which was much more than the total organised sector employment (269.9 lakh in ). However, what is more worrisome is that our modern SSI sector never remained modern. Technological obsolescence and sickness became two of the key challenges faced by this sector (Chakrabarty 2012; Ministry of MSMEs 2012). Empirical studies have also brought out that there was hardly any gradual growth from micro to small, small to medium, and medium to large enterprises in Indian industry due to policy bias against gradual growth (Little, Majumdar and Page 1987; Kashyap 1988). There is a need to nurture and strengthen the sector in such a way that today s small firms will converge into large firms tomorrow or even into multinational corporations (MNCs) (Chakrabarty 2012). This brings out that, how to promote the competitiveness of modern small-scale sector remains an issue of concern to policymakers even today (Ministry of MSMEs 2012). Figure 2: Employment Contributions of OAEs, SSIs, and Organised Sector, to Overall, the first two phases of start-ups have played a crucial role in employment generation in the Indian economy. Though both SSI and OAEs generated employment much less than that of the total organised sector in and , respectively, by 2005 both of these sectors individually employed more of the workforce than the entire organised sector (Figure 2). Economic & Political Weekly EPW march 21, 2015 vol l no Employment (in Lakh) OAEs SSI Organised Sector Employment generated by OAEs, SSI and organised sector Sources: (1) Central Statistics Office; (2) Ministry of MSMEs; (3) Ministry of Finance. Figure 3: Employment Growth Rates of OAEs, SSIs, and Organised Sector 5 Growth Rates of Employment (%) to to OAEs SSI Organised Sector Employment growth of OAEs, SSI and organised sector.

5 Obviously, employment generated by OAEs and SSIs grew whereas organised sector employment appeared to be virtually stagnant between and , but in fact it actually declined in absolute terms by compared to (Figure 3, p 59). However, the roles of both OAEs and SSI are supposed to be largely transitional in the process of industrialisation and economic development (Anderson 1982). But we have not succeeded in dealing with their transformation (with OAEs in the first phase) and in their gradual growth by steadily building up their competitiveness over the period (with SSI in the second phase), and thereby we have failed to integrate them successfully into the overall industrial economy of India. The increased employment contributions of both OAEs and SSI, and the competitiveness-related challenges of SSIs are a reflection of the failure of policies more than anything else. The emergence and growth of new generation start-ups has to be examined in this backdrop. 3.3 New Generation Start-ups The third wave of start-ups or new ventures began rather spontaneously since the onset of economic liberalisation in the early 1990s. This is in response to (i) the informattion and communication technology (ICT) r evolution, and (ii) globalisation characterised by the freer movement of labour and capital between countries, which transformed the organisation of production throughout the world, where firms increasingly work in networks (OECD 2013). Thus, like the original wave of cottage industries, new generation start-ups are emerging more due to market forces more than anything else. However, unlike the earlier waves, these start-ups have multiple sources of entrepreneurship such as ICT industries, higher education institutions (HEIs), public sector units (PSUs), research and development laboratories, technology business incubators (TBIs) and accelerators, return migration of highly qualified and resourceful Indians (entrepreneurs as well as former employees of MNCs) in the form of reverse brain drain, etc. Generally, the entrepreneurs of new generation start-ups are either technical graduates/ postgraduates or technical graduates with postgraduate management qualifications, or doctorates with previous work experience or previous start-up experience. Non-graduates are non-existent and non-technical graduates are exceptions (Krishna and Subrahmanya 2014; ispirt 2014). Therefore, this is largely technology/knowledge-based entrepreneurship, and it is duly supported by new forms of financing such as venture capital funds (VCF; both domestic and foreign), angel investors, and private equities. Further, an ecosystem has gradually emerged to support new generation start-ups in different cities, like Bengaluru (Figure 4). The ecosystem has a strong base of diversified sources of entrepreneurship on the one hand, and three important sources of funding, on the other. In addition, the enactment of Limited Liability Partnership (LLP) Act, 2008 and the recently established SME Exchange platforms on the Bombay Stock 60 Exchange (BSE) and National Stock Exchange (NSE) (though introduced for the MSME sector and not exclusively for new generation start-ups), enables early corporatisation and further fund raising, on the lines of start-ups in the US. Added to these are the initiatives of National Association of Software and Services Companies (NASSCOM), Tata and some of the MNCs, such as Microsoft and Cisco, promote start-ups. Finally, it also includes numerous private websites (such as india.startuplogic.com; desistartups.in and StartupNews.in) which facilitate the diffusion of much needed preliminary information, and programmes (such as Start-up Garage) which enable prospective entrepreneurs to understand the prerequisites of entrepreneurship. Figure 4: Ecosystem for New Generation Start-ups in India Source of enterpreneurship Technology/knowledgeintensive large firms (MNCs or domestic) Higher education institutions R&D organisations Public sector undertakings Technology business incubators (TBI) & accelerators Reverse brain drain NASSCOM Start-up websites Informal start-up clubs + programmes Start-up initiatives by technology/knowledge intensive companies Private Support System New generation start-ups Public Support System Limited Liability Partnership Act 2008 SME Exchange Sources of funding Angel investors Private equities Venture capital funds The recent initiatives of NASSCOM are of particular significance and deserve an elaboration. The NASSCOM has taken several initiatives focusing on different cities, towards the development of an ecosystem for encouraging start-ups in the country. Of them, the most notable one is the Great Indian Start-up Carnival, as part of which NASSCOM initiated 10,000 Start-ups Programme with the support of Google, Microsoft, Kotak, Intel and Verisign (NASSCOM 2014). According to Rajat Tandon, Senior Director, NASSCOM, The 10,000 Start-ups program was envisioned to bridge the gap in terms of the support available to early stage companies especially when they are trying to go from a technological prototype to building a profitable and sustainable business venture. As an ecosystem we need to make the cost of failure small and we don t just need more enterprising founders but also investors who are willing to take risks and also willing to handhold these ventures in this critical stage of their evolution Recently, NASSCOM has launched a NASSCOM Technology Start-up Registry and introduced start-up skills initiative (NASSCOM 2014). Perhaps the first-ever initiative taken by policymakers was the launch of Technopreneur Promotion Programme (TePP) by the Ministry of Science and Technology, Government of India in TePP is a mechanism to promote individual march 21, 2015 vol l no 12 EPW Economic & Political Weekly

6 innovators to become technology-based entrepreneurs (Technopreneurs). Currently, TePP has 34 outreach centres across the country to promote individual innovators (DSIR 2014a). Of late, the promotion of start-ups has attracted more attention from policymakers. Among the recent initiatives taken by government agencies, the formation of TBIs by the National I nstitute of Science and Technology Entrepreneurship Development Board (NSTEDB), Department of Science and Technology (DST), and the Council for Scientific and Industrial Research (CSIR), through National Chemical Laboratory (NCL), Pune, are worth mentioning. The introduction of PRISM (Promoting Innovations in Individuals, Start-ups and MSMEs) scheme in the Twelfth Five Year Plan is another important development. PRISM is open to any Indian citizen with an innovative idea and the wish to translate their idea into working prototypes/ models/processes; or public-funded institutions or organisations engaged in the promotion of innovation (DSIR 2014b). A more significant development relating to start-ups are the recommendations of the Inter-Ministerial Committee for Accelerating Manufacturing in the MSME Sector (Ministry of MSMEs 2013). The committee recognised the role that start-ups can play in accelerating the growth of manufacturing output as well as catalysing a shift towards better technologies and productivity (p 24) and the role of the government in creating a conducive environment for start-ups in the form of favourable legal and regulatory framework, infrastructure, mentoring and guidance, and finance (Ministry of MSMEs 2013). Stable, simple and conducive regulatory environments are often the first and exclusive focus of those who try to accelerate the growth of start-up ecosystems. Therefore, the committee has made recommendations focusing on the need to have simplified rules and regulations, easy availability of infrastructure including land and building, role of district industries centres as facilitating institutions, and strengthening the ecosystem, particularly through angel investors, early stage venture capital funds, India Inclusive Innovation Fund, and promotion of open hub systems and TBIs (Ministry of MSMEs 2013). A recent noteworthy development is the proposal made in the Union Budget ( ) to establish a Fund of Funds with a corpus of Rs 100 billion for providing equity through venture capital funds, quasi equity, soft loans and other risk capital specially to encourage new start-ups by youth (Ministry of Finance 2014). But the success of such a fund will largely depend on its implementation. There will be a need to get competent people to identify the right kind of investment opportunities, set targets for deployment of fund in a timebound manner, etc (Business Today 2014). Overall, the above discussion brings out that, unlike in the earlier two phases of start-ups, both public and private initiatives for the promotion of start-ups have been emerging, though independently, in major cities across the country. However, the efforts will bear more fruit if public-private joint initiatives are encouraged in this regard. The recent proposal made by the NASSCOM to the Government of India acquires significance in this context. With an assumption that about 50,000 technology start-ups can generate about 3 million SPECIAL ARTICLE additional employment and contribute 2% of the GDP by 2020, the NASSCOM has recommended the launch of Rs 5,000 million India Technology Entrepreneurship Mission (ITEM) to further foster the ecosystem to accelerate the growth of start-ups (NASSCOM 2014). While the ecosystem for start-ups is getting stronger day by day, there is no clarity about the employment contribution of new generation start-ups yet. This is because, unlike the initial two phases of start-ups, no official attempt to gather data on the number of new generation start-ups and their employment contribution has been made so far. However, there are indications that technology/knowledge intensive industry start-ups are emerging in all the major cities of India, with Bengaluru accounting for the bulk of start-ups as well as closures. The database of Microsoft Accelerator could trace nearly 4,000 startups across the country (Microsoft Accelerator Research 2012). How far this figure is closer to reality, may be a debatable issue. 4 Evaluation and Conclusions India has a unique historical experience of dealing with startups. While the earliest form of start-ups, OAEs, almost vanished in industrialised and newly industrialised countries, they are going strong in Indian economy, in terms of supporting subsistence livelihood to poor income-less educated households. With India s independence, when policymakers laid stress on promoting modern industrialisation, SSI assumed promotional significance, soon complemented by a host of protective measures. The promotion of SSI in a protected environment did more harm than good resulting in technological obsolescence and sickness. However, overall, similar to OAEs, SSI has grown in size and employment. Thus, the first two versions of start-ups have thrived side by side in Indian economy, in the midst of constraints and shortcomings within. The new generation start-ups represent the third phase/wave/ dimension of start-ups. They are largely the product of the ICT revolution and globalisation. The ecosystem that has emerged in major cities of the country is distinct and unique in terms of sources of entrepreneurship and finance. An appropriate support system has emerged due to market forces, supplemented by some policy initiatives. However, India s policy for new generation start-ups is in its infancy, as it primarily focuses on the generation phase of start-ups and not on the subsequent stages to deal with either success and growth or failure and closure. What causes concern at this stage is that the proposed policy support by the Inter-Ministerial Committee (Ministry of MSMEs 2013) gives an impression that the government is going to view the promotion of start-ups through the same lens through which it viewed the promotion of MSMEs. There is a need to view the new generation start-ups in a distinct framework, based on the lessons learnt from the past. This is due to the following reasons: (i) The entrepreneurial background of new generation startups is entirely different from that of the MSME sector of the second phase. These start-ups are emerging neither as a means of livelihood nor in response to policy inducements. Rather, they are coming up largely with the knowledge base and Economic & Political Weekly EPW march 21, 2015 vol l no 12 61

7 technology/innovations achieved by the entrepreneurs in response to perceived market opportunities. (ii) The growing population of TBIs and accelerators is presenting an altogether new environment for new generation startups. They are meant for promoting/accelerating the commercialisation of most potential innovative ideas/products. Therefore, start-ups emerging from them are likely to have a higher probability of success than failure. (iii) There is no guaranteed or subsidised finance for any new idea from any financial institution. Angel investors/venture capitalists/private equity funds will intensively screen and assess the potential of an innovative idea/product, and based on satisfactory evaluation only will such ideas/products be commercialised. (iv) The market support system for start-ups, which are emerging will enable the prospective entrepreneurs to acquire the required preliminary information from websites, start-up clubs, seminars and conferences, apart from NASSCOM. Further, those startups which succeed can go public by making use of SME platforms and thus raise more resources for their scale expansion. (v) In most cases, the entrepreneurs themselves would have made plans to withstand any kind of eventuality, including start-up failure. In fact, the start-ups should be viewed to form the base of a pyramid where successfully grown medium firms and large firms should form the intermediate layers whereas the most successful ones would grow to become MNCs, which would constitute the top of the pyramid (Figure 5). In such a pyramidal structure, there should not be any scalar bias and the evolution of large sized firms and MNCs should happen spontaneously and continuously. This will coincide with the closure of unsuccessful ones and survival and modest growth of moderate achievers. Figure 5: A Hypothetical Pyramidal Structure of Technology/Knowledge Intensive Industries and Services MNCs Large firms Medium-sized firms would always like to grow, to facilitate such a growth, late stage venture capital must be strengthened as much as early stage venture capital. (iii) It is essential to recognise the imminent failure of weak start-ups. Appropriate mechanisms must be developed to deal with start-up failures by allowing their closures, irrespective of their age and size, and redeployment of such invested funds, as far as possible. There should be no attempts made to artificially make the firms alive, by declaring them sick and deal with their sickness. Some of the failed entrepreneurs might try to restart a new venture, with their learning and experience from the past mistakes, whereas some others might join large firms as employees. There is already evidence to show that about 61% of first time failed entrepreneurs got back to work at large companies in India (Microsoft Accelerator Research 2012). Repeated experiments and attempts by entrepreneurs would contribute to the evolution of a better ecosystem for start-ups in the course of time and therefore it deserves to be encouraged. Allow them to swim and/or sink as they deserve. (iv) Acquisitions, mergers, and/or takeovers of start-ups by other firms, MNCs, or domestic large firms should form part of the ecosystem. In many cases, talented entrepreneurs might initiate start-ups time and again, to make profits by enticing large firms to acquire them. This might encourage other prospective entrepreneurs to learn and follow suit. A suitably developed start-up ecosystem can lead to a steady increase in the generation of start-ups and growth of the successful ones, and thereby promote a vibrant technology/knowledge-intensive industry in the country. This should eventually result in employment generated by newgeneration start-ups led technology/knowledge-intensive e nterprises to outpace SSIs [or micro, small and medium enterprises (MSMEs)] as well as OAEs in the coming decades. An approximate description of this anticipated scenario is presented in Figure 6. Figure 6: Relative Significance of Three Generations of Start-ups for Employment over Time Employment * Livelihood-based entrepreneurship + Policy-induced entrepreneurship $ Technology/knowledge-based entrepreneurship Start-ups Given the above, the policy for the promotion of start-ups must focus on the following core issues: (i) Incentives for start-ups, if at all, must be time-bound and not perennial. This will dissuade the less successful startups to remain infants enjoying the concessions and benefits. Rather, efforts should be focused on what LeBlanc (2012) calls, development of Mass Incubators, drawing on the tenets of Y Combinator and 500 start-ups in the US. These efforts should not be confined to Tier I cities alone but should cover Tier II and Tier III cities as well. (ii) It is imperative to facilitate the scalability of start-ups that survived and stabilised successfully. While the successful ones 62 OAE Employment* SSI/MSME Employment + Technology/Knowledge- Intensive Industry Employment $ Time To conclude, we have not dealt successfully with the earlier two phases/waves of start-ups, and we cannot afford to falter again while dealing with the third wave of start-ups. How do we deal with new generation start-ups will have a long lasting impact on future productive employment generation, economic transformation and growth, and possibly, external economic performance of India. march 21, 2015 vol l no 12 EPW Economic & Political Weekly

8 References Acs, Z J and C Armington (2006): Entrepreneurship, Geography and American Economic Growth, Cambridge, UK: Cambridge University Press. Anderson, D (1982): Small Industry in Developing Countries: Some Issues, World Bank Staff Working Papers, No 518, Washington DC. NASSCOM (2014): National Association of Software and Services Companies (NASSCOM), website Barringer, B R, F F Jones and D O Neubaum (2005): A Quantitative Content Analysis of the Characteristics of Rapid Growth Firms and Their Founders, Journal of Business Venturing, Vol 20, No 5, pp Baum, J A C (1996): Liabilities of Newness, Adolescence, and Obsolescence: Exploring Age Dependence in the Dissolution of Organizational Relationships and Organizations, Proceedings of the Administrative Sciences Association of Canada, Annual Conference. Business Today (2014): Union Budget : Rs 10,000 Crore Fund for Start-ups: Implement ation Is the Key, 10 July. Central Statistics Office (2001): Economic Census 1998: All India Report, Ministry of Statistics and Programme Implementation, Government of India, New Delhi. (2008): Economic Census 2005: All India Report, Ministry of Statistics and Programme Implementation, Government of India, New Delhi. Certo, S T (2003): Influencing Initial Public Offering Investors with Prestige: Signalling with Board Structures, Academy of Management Review, Vol 28, No 3, pp Chakrabarty, K C (2012): Empowering the Growth of Emerging Enterprises, Keynote Address delivered at the Economic Times Thought Leadership Conclave on 12 April, at Mumbai. DCSSI (2002): Small Scale Industries in India: An Engine of Growth, Office of the Development Commissioner Small Scale Industries, Ministry of SSI, New Delhi. DSIR (2014a): Technopreneur Promotion Programme website, (2014b): Promoting Innovations in Individuals, Start-ups and MSMEs (PRISM), website, Folta, T B, A C Cooper and Y S Baik (2006): Geographic Cluster Size and Firm Performance, Journal of Business Venturing, Vol 21, No 2, pp Fritsch, M and F Noseleit (2013): Start-ups, Long and Short-term Survivors, and Their Contribution to Employment Growth, Journal of Evolutionary Economics, Vol 23, No 4, pp Gadgil, D R (1972): The Industrial Revolution of India in Recent Times: , Delhi: O xford University Press. Gai, B and B Joffe (2013): India Start-up Report, World Start-up Report, Gilbert, B A, P P McDougall and D B Audretsch (2006): New Venture Growth: A Review and Extension, Journal of Management, Vol 32, No 6, pp Hannan, M T and J Freeman (1984): Structural Inertia and Organizational Change, American Sociological Review, Vol 49, No 2, pp Hay, M, P Verdin and P Williamson (1993): Successful New Ventures: Lessons for Entrepreneurs and Investors, Long Range Planning, Vol 26, No 5, pp ispirt (2014): ispirt Product Industry Monitor Report, Indian Software Product Industry Round Table, Bengaluru. Kane, T (2010): The Importance of Start-ups in Job Creation and Job Destruction, Working Paper, Kauffman Foundation Research Series: Firm Formation and Economic Growth, US. Kashyap, S P (1988): Growth of Small-Size Enterprises in India: Its Nature and Content, World Development, Vol 16, No 6, pp K asturi, S V and M H Bala Subrahmanya (2014): Start-ups and Small Scale Industry Growth in India: Do Institutional Credit and Start-ups Make a Difference?, International Journal of Entrepreneurial Venturing, Vol 6, No 3, pp Krishna, H S and M H Bala Subrahmanya (2014): Entrepreneurial Learning and Indian Tech Start-up Survival: An Empirical Investigation, paper presented at the Institute for Small Business and Enterprise (ISBE) Conference 2014 held in Manchester, UK, 5-6 November. LeBlanc, R (2012): The Indian Start-up Ecosystem: On the Cusp? Research Report, Grail Research, Massachusetts. Little, I M D, D Majumdar and J M Page (1987): Small Manufacturing Enterprises: A Comparative Study of India and Other Countries, New York: Oxford University Press. Mendels, F F (1972): Proto-Industrialization: The First Phase of the Industrialization Process, The Journal of Economic History, Vol 32, No 1, pp Microsoft Accelerator Research (2012): India Tech Start-up Starts and Closure, Bengaluru: Microsoft India Accelerator. Ministry of Finance (2013): Economic Survey , New Delhi: Oxford University Press. (2014): Union Budget of India , indiabudget.nic.in/ub /bh/bh1.pdf Ministry of MSMEs (2012): Report of the Working Group on Micro, Small & Medium Enterprises (MSMEs) Growth for 12th Five Year Plan ( ), Government of India, New Delhi. (2013): Recommendations of the Inter-Ministerial Committee for Accelerating Manufacturing in Micro, Small & Medium Enterprises Sector, Government of India, New Delhi. OECD (2013): Start-up Latin America: Promoting Innovation in the Region, Paris: Development Centre Studies, Organisation for Economic Cooperation and Development. Food Subsidy: Concept, Rationale, Implementation Design and Policy Reforms Economic Benefits of Futures: Do Speculators Play Spoilsport in Agricultural Commodity Markets? Projected Effect of Droughts on Supply, Demand, and Prices of Crops in India Groundwater Irrigation-Electricity-Crop Diversification Nexus in Punjab: Trends, Turning Points, and Policy Initiatives Agricultural Productivity Growth: Is There Regional Convergence? REVIEW OF RURAL AFFAIRS December 27, 2014 Planning Commission (1985): Seventh Five Year Plan ( ), Vol II, Government of India, New Delhi. Pullen, J P (2013): Emerging Tech: 9 International Start-up Hubs to Watch, Entrepreneur, Business Daily, US, 7 May. Robinson, K C (1998): An Examination of the Influence of Industry Structure on Eight Alternative Measures of New Venture Performance for High Potential Independent New Ventures, Journal of Business Venturing, Vol 16, pp Romanelli, E and C B Schoonhoven (2001): The Local Origins of New Firms in C B Schoonhoven and E Romanelli (eds), The Entrepreneurship Dynamic, Stanford: Stanford University Press, pp Song, M, K Podoynitsyna, H Bij and J I M Halman (2008): Success Factors in New Ventures: A Meta-analysis, The Journal of Product Innovation Management, Vol 25, No 1, pp Start-up Genome (2012): Start-up Ecosystem Report 2012, US. Stinchcombe, A L (1965): Social Structure and Organizations in J G March (ed), Handbook of Organization, Chicago: Rand McNally, pp Stokes, D (1995): Small Business Management, London: DP Publications Ltd. Subrahmanya, Bala M H (1993): Economics of Rural Industries in Karnataka, PhD Thesis, Institute for Social and Economic Change, Bengaluru. (1998): Shifts in India s Small Industry Policy, Small Enterprise Development, Vol 9, No 1, pp (2010): Internet New Ventures in the USA: Winning Venture Capital Support and Going Public ( ), report prepared as part of the Fulbright-Nehru Senior Research Fellowship at University of California, Davis, US. Subrahmanya, B, M Mathirajan, P Balachandra and M N Srinivasan (2001): R&D in Small Scale Industries in Karnataka, Research Project Report, Department of Science and Technology, New Delhi. UNDP (2001): Human Development Report 2001, New York: Oxford University Press. Bhupat M Desai, Errol D souza, N V Namboodiri K G Sahadevan Praduman Kumar, P K Joshi, Pramod Aggarwal Anindita Sarkar, Arjit Das Balaji S J, Suresh Pal For copies write to: Circulation Manager, Economic and Political Weekly, , A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel, Mumbai Economic & Political Weekly EPW march 21, 2015 vol l no 12 63

2017 SURVEY OF ENTREPRENEURS AND MSMES IN VIETNAM

2017 SURVEY OF ENTREPRENEURS AND MSMES IN VIETNAM 2017 SURVEY OF ENTREPRENEURS AND MSMES IN VIETNAM Building the capacity of MSMEs through technology and innovation 2017 SURVEY OF ENTREPRENEURS AND MSMES IN VIETNAM I 1 2017 SURVEY OF ENTREPRENEURS AND

More information

INCUBATORS - A NEW EXPERIMENT IN SMALL BUSINESS DEVELOPMENT

INCUBATORS - A NEW EXPERIMENT IN SMALL BUSINESS DEVELOPMENT Incubators A New Experiment in Small Business Development This is an article published in 1991 in the Indian Manager, (Journal of the School Management Studies, Cochin University of Science and Technology,

More information

Driving Innovation in MSME s

Driving Innovation in MSME s Driving Innovation in MSME s Ms. Deepali Shahane Lecturer, I.M.E.D. Bharati Vidyapeeth, Pune email: shahanedeepali@gmail.com Mr. Dhananjay Shahane Principal Designer, Aakruti consultants email: dshahane@aakruticonsultants.com

More information

Helping Karnataka s industries reach new heights

Helping Karnataka s industries reach new heights POLICY ADVISORY July, 2014 Helping Karnataka s industries reach new heights Industrial policy recommendations for 20141 PART 1: POLICY RECOMMENDATIONS 1. Solve land limitation problems by permitting multi-storey

More information

The role of national development banks un fostering SME access to finance

The role of national development banks un fostering SME access to finance The role of national development banks un fostering SME access to finance Hernando Castro. Bancoldex. Colombia Septembre de 2017 Bancoldex s Ownership Structure Generalities Incorporated as a mixed stock

More information

SMEs in developing countries with special emphasis on OIC Member States, and policy options to increase the competitiveness of SMES

SMEs in developing countries with special emphasis on OIC Member States, and policy options to increase the competitiveness of SMES The Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC) October 10th, 2012 SMEs in developing countries with special emphasis on OIC Member

More information

Integra. International Corporate Capabilities th Street NW, Suite 555W, Washington, DC, Tel (202)

Integra. International Corporate Capabilities th Street NW, Suite 555W, Washington, DC, Tel (202) Integra International Corporate Capabilities 1030 15th Street NW, Suite 555W, Washington, DC, 20005 Tel (202) 898-4110 www.integrallc.com Integra is an international development firm with a fresh and modern

More information

Factors and policies affecting services innovation: some findings from OECD work

Factors and policies affecting services innovation: some findings from OECD work Roundtable on Innovation in Services Lisbon Council, Brussels, 27 November 2008 Factors and policies affecting services innovation: some findings from OECD work Dirk Pilat Head, Science and Technology

More information

Innovation, Entrepreneurship and Rural Development: Some Key Themes

Innovation, Entrepreneurship and Rural Development: Some Key Themes Innovation, Entrepreneurship and Rural Development: Some Key Themes Professor David Smallbone Small Business Research Centre Kingston University Kingston upon Thames, UK INTRODUCTION Although innovation

More information

Chapter The Importance of ICT in Development The Global IT Sector

Chapter The Importance of ICT in Development The Global IT Sector Chapter 2 IT Sector: Alternate Development Models 2.1. The Importance of ICT in Development The contribution of the Information and Communication Technology (ICT) sector to socioeconomic development is

More information

How Technology-Based Start-Ups Support U.S. Economic Growth

How Technology-Based Start-Ups Support U.S. Economic Growth How Technology-Based Start-Ups Support U.S. Economic Growth BY J. JOHN WU AND ROBERT D. ATKINSON NOVEMBER 2017 Policymakers should focus on spurring highgrowth, technologybased start-ups. These firms,

More information

Diagnosis of the start-up ecosystem in Poland. A knowledge-based economy cannot develop without innovative businesses, meaning start-ups.

Diagnosis of the start-up ecosystem in Poland. A knowledge-based economy cannot develop without innovative businesses, meaning start-ups. Diagnosis of the start-up ecosystem in Poland A knowledge-based economy cannot develop without innovative businesses, meaning start-ups. When compared with the forty most developed economies in the world,

More information

How to build an enabling environment for youth entrepreneurship and sustainable enterprises

How to build an enabling environment for youth entrepreneurship and sustainable enterprises How to build an enabling environment for youth entrepreneurship and sustainable enterprises Paper for the knowledge sharing event on Integrated Youth Employment Strategies, Moscow 17 19 February, 2010

More information

Local innovation ecosystems

Local innovation ecosystems Local innovation ecosystems Lessons learned from local governments September 2017 Contents 1. Executive summary... 3 2. Key findings... 3 3. Challenges and bottlenecks to local innovation systems... 4

More information

Karnataka-Industrial Policy

Karnataka-Industrial Policy Preamble (MSME Related) Karnataka-Industrial Policy Karnataka has been a pioneer in Industry. For several years now, the State has been consistently pursuing progressive Industrial policies to meet the

More information

POWERING UP SASKATOON S TECH SECTOR SASKATOON REGIONAL ECONOMIC DEVELOPMENT AUTHORITY JULY 2017

POWERING UP SASKATOON S TECH SECTOR SASKATOON REGIONAL ECONOMIC DEVELOPMENT AUTHORITY JULY 2017 SASKATOON REGIONAL ECONOMIC DEVELOPMENT AUTHORITY JULY 2017 Saskatoon Regional Economic Development Authority (SREDA) SREDA is an independent non-profit economic development organization whose mandate

More information

GUJARAT INDUSTRIAL POLICY 2003

GUJARAT INDUSTRIAL POLICY 2003 GUJARAT INDUSTRIAL POLICY 2003 SMALL AND MEDIUM ENTERPRISES Gujarat, since many years has been known as the land of entrepreneurs. It is this entrepreneurial spirit that ushered the process of emergence

More information

Innovative R&D in Biotech Sector. Dr. Purnima Sharma Managing Director Biotech Consortium India Limited New Delhi

Innovative R&D in Biotech Sector. Dr. Purnima Sharma Managing Director Biotech Consortium India Limited New Delhi Innovative R&D in Biotech Sector Dr. Purnima Sharma Managing Director Biotech Consortium India Limited New Delhi ABOUT BCIL Biotech Consortium India Limited INCORPORATED : 1990 PROMOTER : Department of

More information

ACTION ENTREPRENEURSHIP GUIDE TO GROWTH. Report on Futurpreneur Canada s Action Entrepreneurship 2015 National Summit

ACTION ENTREPRENEURSHIP GUIDE TO GROWTH. Report on Futurpreneur Canada s Action Entrepreneurship 2015 National Summit ACTION ENTREPRENEURSHIP GUIDE TO GROWTH Report on Futurpreneur Canada s Action Entrepreneurship 2015 National Summit REPORTING BACK INTRODUCTION Futurpreneur Canada launched Action Entrepreneurship in

More information

STate of the SGB Sector Executive Summary

STate of the SGB Sector Executive Summary STate of the SGB Sector Executive Summary 20 Snapshot of the Sector 20 SGB Sector 22 SGB investment vehicles were launched in 20; median target fund size was $66.5 million. 15 SGB investment vehicles reached

More information

Business Incubation. Entrepreneurship and Innovation

Business Incubation. Entrepreneurship and Innovation Business Incubation as a Tool for Promotion of Entrepreneurship and Innovation Advancing Innovation in ECA 2007 Regional Conference of ECAbit Yerevan, Armenia, September 17, 2007 Valerie D Costa, infodev

More information

Ministerial declaration of the high-level segment submitted by the President of the Council

Ministerial declaration of the high-level segment submitted by the President of the Council Ministerial declaration of the high-level segment submitted by the President of the Council Development and international cooperation in the twenty-first century: the role of information technology in

More information

OECD LEED Local Entrepreneurship Review, East Germany : Action Plan Districts Mittweida (Saxony) and Altenburger Land (Thuringia)

OECD LEED Local Entrepreneurship Review, East Germany : Action Plan Districts Mittweida (Saxony) and Altenburger Land (Thuringia) This "ActionPlan" builds on recommendations given in the draft summary report on the districts Mittweida (Saxony) und Altenburger Land (Thuringia), March 2006, presented at a regional workshop on 20 March

More information

GUIDELINES FOR STATE INITIATIVES FOR MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT

GUIDELINES FOR STATE INITIATIVES FOR MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT GUIDELINES FOR STATE INITIATIVES FOR MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT * * * * * 1. Short Title: Operational Guidelines for activities under State Initiatives for Micro & Small Enterprises

More information

Role of DIC, SISI, EDII, NIESBUD, NEDB.

Role of DIC, SISI, EDII, NIESBUD, NEDB. Role of DIC, SISI, EDII, NIESBUD, NEDB. The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small,

More information

ROLE OF DISTRICT INDUSTRIAL CENTERS IN ENTREPRENEURSHIP DEVELOPMENT

ROLE OF DISTRICT INDUSTRIAL CENTERS IN ENTREPRENEURSHIP DEVELOPMENT ROLE OF DISTRICT INDUSTRIAL CENTERS IN ENTREPRENEURSHIP DEVELOPMENT L. Balaji 1, S. Reddy Sowmya 2 1 Assistant Professor, 2 Student, Department of MBA, Sri Sai Institute of Technology and Science, Rayachoty

More information

India has a large youth population

India has a large youth population Startupreneurs Startupreneurs Forum Forum Vision: To create and develop an ecosystem for India to become a Nation of Startupreneurs CII Startupreneurs Forum India has a large youth population within the

More information

Developing entrepreneurship competencies

Developing entrepreneurship competencies POLICY NOTE SME Ministerial Conference 22-23 February 2018 Mexico City Developing entrepreneurship competencies Parallel session 3 3 Background information This paper was prepared as a background document

More information

Connecting Commerce. Business confidence in China s digital environment. A report from The Economist Intelligence Unit. Written by

Connecting Commerce. Business confidence in China s digital environment. A report from The Economist Intelligence Unit. Written by Connecting Commerce Business confidence in China s digital environment A report from The Economist Intelligence Unit Written by China is probably the number two startup environment in the world, after

More information

Digital Economy.How Are Developing Countries Performing? The Case of Egypt

Digital Economy.How Are Developing Countries Performing? The Case of Egypt Digital Economy.How Are Developing Countries Performing? The Case of Egypt by Nagwa ElShenawi (PhD) MCIT, Egypt Produced for DIODE Network, 217 Introduction According to the OECD some of the most important

More information

Federal Budget Firmly Establishes Manufacturing as Central to Innovation and Growth Closely Mirrors CME Member Recommendations to Federal Government

Federal Budget Firmly Establishes Manufacturing as Central to Innovation and Growth Closely Mirrors CME Member Recommendations to Federal Government Federal Budget Firmly Establishes Manufacturing as Central to Innovation and Growth Closely Mirrors CME Member Recommendations to Federal Government March 22, 2017 Today the Government tabled the 2017/2018

More information

EFB Position Paper: Fostering Long-Term Entrepreneurship

EFB Position Paper: Fostering Long-Term Entrepreneurship EFB Position Paper: Fostering Long-Term Entrepreneurship Entrepreneurship: any attempt at new business or new venture creation, such as self-employment, a new business organisation, or the expansion of

More information

KIGALI INNOVATION CITY

KIGALI INNOVATION CITY KIGALI INNOVATION CITY Kigali Innovation City 1 Africa cannot accumulate wealth, merely consuming technology produced elsewhere. The purpose of initiatives like Kigali Innovation City is to unlock value

More information

Health care innovations and medical technology: reaching the unreached

Health care innovations and medical technology: reaching the unreached Health care innovations and medical technology: reaching the unreached Context setting India ill equipped to meet the growing needs of the population. Brilliance and talent in medicine, engineering & basic

More information

Highlight. Stop hesitating: Learn how to invest in startups like a pro. 13 July 2016

Highlight. Stop hesitating: Learn how to invest in startups like a pro. 13 July 2016 Stop hesitating: Learn how to invest in startups like a pro 13 July 2016 Highlight Startups in Asia, particularly in China, are the new investment opportunities that may soon outpace market leaders like

More information

Action Plan for Jobs An Island of Talent at the Centre of the World

Action Plan for Jobs An Island of Talent at the Centre of the World Action Plan for Jobs 2018 An Island of Talent at the Centre of the World September 2017 1 INTRODUCTION The American Chamber of Commerce Ireland s priority is that Ireland remains a unique transatlantic

More information

MARKETING ASSISTANCE SCHEME

MARKETING ASSISTANCE SCHEME MARKETING ASSISTANCE SCHEME 1. BACKGROUND The Micro, Small and Medium Enterprises (MSMEs) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs

More information

SUBMISSION TO THE AUSTRALIA 2020 SUMMIT STIMULATING INNOVATION IN THE ICT SECTOR

SUBMISSION TO THE AUSTRALIA 2020 SUMMIT STIMULATING INNOVATION IN THE ICT SECTOR SUBMISSION TO THE AUSTRALIA 2020 SUMMIT STIMULATING INNOVATION IN THE ICT SECTOR This submission puts forward the views of the Australian Computer Society on promoting and improving ICT innovation in Australia.

More information

Industrial Strategy Green Paper. Consultation Response Manufacturing Northern Ireland

Industrial Strategy Green Paper. Consultation Response Manufacturing Northern Ireland Industrial Strategy Green Paper Consultation Response Manufacturing Northern Ireland Introduction Manufacturing is the engine which drives the private sector in Northern Ireland. 1 in 4 families are directly

More information

Book Code : 7729 Price : ` ISBN COPYRIGHT

Book Code : 7729 Price : ` ISBN COPYRIGHT Book Code : 7729 Price : ` 150.00 ISBN 978-935167-104-6 SBPD PUBLICATIONS COPYRIGHT Sanjay Gupta M. Com., M. Phil. S B P D PUBLICATIONS SBPD PUBLICATIONS COPYRIGHT Publisher & Author Latest Edition Printing

More information

INFORMATION TECHNOLOGY INDUSTRY IN INDIA GROWTH STRUCTURE AND PERFORMANCE

INFORMATION TECHNOLOGY INDUSTRY IN INDIA GROWTH STRUCTURE AND PERFORMANCE CHAPTER - V INFORMATION TECHNOLOGY INDUSTRY IN INDIA GROWTH STRUCTURE AND PERFORMANCE Now-a-days, India has come up in the three hot fields of beauty, cricket and information technology. Bill Gates says

More information

Business Incubation Models and Approaches in the Framework of Innovation Policy Advancing Innovation in ECA 2007 Regional Conference of ECAbit

Business Incubation Models and Approaches in the Framework of Innovation Policy Advancing Innovation in ECA 2007 Regional Conference of ECAbit Business Incubation Models and Approaches in the Framework of Innovation Policy Advancing Innovation in ECA 2007 Regional Conference of ECAbit Heinz Fiedler infodev Incubator Initiative MENA Region Facilitator

More information

Under the High Patronage of H.E. Abdel Fattah El-Sisi President of the Arab Republic of Egypt

Under the High Patronage of H.E. Abdel Fattah El-Sisi President of the Arab Republic of Egypt Driving Investment for Inclusive Growth 7 th - 9 th December 2017 Sharm El Sheikh, Egypt Business for Africa, Egypt and the World Under the High Patronage of H.E. Abdel Fattah El-Sisi President of the

More information

The Landscape of Social Enterprise in Ghana

The Landscape of Social Enterprise in Ghana The Landscape of Social Enterprise in Ghana Emily Darko Presentation prepared for the Social Enterprise Policy Dialogue, 23 rd March 2015, Accra, Ghana Study Methodology We set out to learn: What social

More information

Access to finance for innovative SMEs

Access to finance for innovative SMEs A policy brief from the Policy Learning Platform on SME competitiveness July 2017 Access to finance for innovative SMEs Policy Learning Platform on SME competitiveness Introduction Entrepreneurship is

More information

An Overview of the Polish Startups and Start in Poland Program

An Overview of the Polish Startups and Start in Poland Program An Overview of the Polish Startups and Start in Poland Program Dr inż. Janusz Marszalec, MBA Founder & CEO, Edison Centre Lecturer, Warsaw University of Technology Seminar Current Trend in Start-ups and

More information

Vote for BC. Vote for Tech.

Vote for BC. Vote for Tech. Vote for BC. Vote for Tech. Advancing the tech sector is a part of each party s agenda. Here s a summary of key tech-related elements in the three platforms as it relates to BCTECH s policy pillars: talent,

More information

Start Up INDIA Action Plan Start ups Innovation and growth In INDIA

Start Up INDIA Action Plan Start ups Innovation and growth In INDIA Start Up INDIA Action Plan 2016 Start ups Innovation and growth In INDIA What if your idea is not just an idea? What if it sees light? What if it s really born? What if you can get someone to believe in

More information

Research on Sustainable Development Capacity of University Based Internet Industry Incubator Li ZHOU

Research on Sustainable Development Capacity of University Based Internet Industry Incubator Li ZHOU 2016 3 rd International Conference on Economics and Management (ICEM 2016) ISBN: 978-1-60595-368-7 Research on Sustainable Development Capacity of University Based Internet Industry Incubator Li ZHOU School

More information

SME Programs Empowering Young Entrepreneurs, Launching High-Impact Enterprises

SME Programs Empowering Young Entrepreneurs, Launching High-Impact Enterprises SME Programs Empowering Young Entrepreneurs, Launching High-Impact Enterprises Job Creation through Value Creation mincon Conference on Investment and Finance of the ICT Sector in the Arab Region May 9,

More information

RIO Country Report 2015: Slovak Republic

RIO Country Report 2015: Slovak Republic From the complete publication: RIO Country Report 2015: Slovak Republic Chapter: Executive summary Vladimir Balaz Jana Zifciakova 2016 This publication is a Science for Policy Report by the Joint Research

More information

of American Entrepreneurship: A Paychex Small Business Research Report

of American Entrepreneurship: A Paychex Small Business Research Report 2018 Accelerating the Momentum of American Entrepreneurship: A Paychex Small Business Research Report An analysis of American entrepreneurship during the past decade and the state of small business today

More information

START-UP VISA CANADA. Strengthening the entrepreneurship ecosystem

START-UP VISA CANADA. Strengthening the entrepreneurship ecosystem START-UP VISA CANADA Strengthening the entrepreneurship ecosystem INTRODUCTION Team of tech leaders across Canada that work with industry, government and academia to foster collaboration between business

More information

ECONOMIC & WORKFORCE DEVELOPMENT

ECONOMIC & WORKFORCE DEVELOPMENT ECONOMIC & WORKFORCE DEVELOPMENT Increasing economic opportunities and infrastructure development for Indian Country requires a comprehensive, multiagency approach. Indian Country continues to face daunting

More information

Key development issues and rationale for Bank involvement

Key development issues and rationale for Bank involvement PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB424 Project Name E-Lanka Development Region SOUTH ASIA Sector Information technology (70%);General industry and trade sector (30%) Project

More information

Paper 2. Changing Economic World 2

Paper 2. Changing Economic World 2 Paper 2 Changing Economic World 2 Key idea: Major changes in the economy of the UK have affected, and will continue to affect, employment patterns and regional growth. Specific content: Economic futures

More information

ICT-enabled Business Incubation Program:

ICT-enabled Business Incubation Program: ICT-enabled Business Incubation Program: Strengthening Innovation at the Grassroots June 2009 infodev ICT-enabled Business Incubation Program 1 Program Summary Objective infodev s Innovation and Entrepreneurship

More information

7KH LQWHUQHW HFRQRP\ LPSDFW RQ (8 SURGXFWLYLW\DQGJURZWK

7KH LQWHUQHW HFRQRP\ LPSDFW RQ (8 SURGXFWLYLW\DQGJURZWK 63((&+ 3HGUR6ROEHV Member of the European Commission Economic and Monetary Affairs 7KH LQWHUQHW HFRQRP\ LPSDFW RQ (8 SURGXFWLYLW\DQGJURZWK European government Business Relations Council meeting %UXVVHOV0DUFK

More information

Priority Axis 1: Promoting Research and Innovation

Priority Axis 1: Promoting Research and Innovation 2014 to 2020 European Structural and Investment Funds Growth Programme Call for Proposals European Regional Development Fund Priority Axis 1: Promoting Research and Innovation Managing Authority: Fund:

More information

Finnish STI Policy

Finnish STI Policy Finnish STI Policy 29-211 211 Continuous development of innovation dynamics through the recession INNO-Grips Workshop: Innovation policy in an anti-cyclical conjuncture 3.9.21, Köln Mr. Kai HUSSO Chief

More information

Building Effective Startup Ecosystems. Presented by: Tim Rowe February 16, 2017

Building Effective Startup Ecosystems. Presented by: Tim Rowe February 16, 2017 Building Effective Startup Ecosystems Presented by: Tim Rowe February 16, 2017 WHAT IS INNOVATION, REALLY? Not innovation: water bicycle Never employed by society Real innovation: hybrid electric engine

More information

Higher Education Innovation Fund

Higher Education Innovation Fund February 2006 Higher Education Innovation Fund Summary evaluation of the first round (2001-05) HEFCE 2006 Higher Education Innovation Fund Summary evaluation of the first round (2001-05) Executive summary

More information

A STUDY OF THE ROLE OF ENTREPRENEURSHIP IN INDIAN ECONOMY

A STUDY OF THE ROLE OF ENTREPRENEURSHIP IN INDIAN ECONOMY A STUDY OF THE ROLE OF ENTREPRENEURSHIP IN INDIAN ECONOMY C.D. Jain College of Commerce, Shrirampur, Dist Ahmednagar. (MS) INDIA The study tells that the entrepreneur acts as a trigger head to give spark

More information

INDONESIA EXPERIENCE ON ENTREPRENEURSHIP DEVELOPMENT: ON THE PERSPECTIVE OF REGULATION. By: I Wayan Dipta

INDONESIA EXPERIENCE ON ENTREPRENEURSHIP DEVELOPMENT: ON THE PERSPECTIVE OF REGULATION. By: I Wayan Dipta INDONESIA EXPERIENCE ON ENTREPRENEURSHIP DEVELOPMENT: ON THE PERSPECTIVE OF REGULATION A. Introduction By: I Wayan Dipta Advisor to the Minister of Cooperative and SME For Technology Utilization Indonesia

More information

SHASTA EDC BUSINESS PLAN

SHASTA EDC BUSINESS PLAN SHASTA EDC BUSINESS PLAN 2016-2017 TABLE OF CONTENTS Vision, Mission, Principles & Values 3 Responsibilities & Focus 4 Company Recruitment 5-7 Business Expansion & Retention 8 Entrepreneurial Development

More information

ENTREPRENEURSHIP. General Guidelines about the course. Course Website: https://sites.google.com/site/bzuent2015

ENTREPRENEURSHIP. General Guidelines about the course. Course Website: https://sites.google.com/site/bzuent2015 ENTREPRENEURSHIP General Guidelines about the course Course Website: https://sites.google.com/site/bzuent2015 Welcome to the course of Entrepreneurship Please know the basic class rules to ensure semester

More information

FOREIGN DIRECT INVESTMENT IN CATALONIA AND BARCELONA

FOREIGN DIRECT INVESTMENT IN CATALONIA AND BARCELONA FOREIGN DIRECT INVESTMENT IN CATALONIA AND BARCELONA Executive Summary and Conclusions. February - April 2017 2 Executive summary Executive Summary 1.1 Methodology and Objectives The objectives of this

More information

Business Globalization

Business Globalization EMC 2 Global Innovation Conference Santa Clara, CA, October 31, 2012 Business Globalization and the Importance of Entrepreneurial Innovation Richard B. Dasher, Ph.D. Director, US-Asia Technology Management

More information

Opportunities in Mexico

Opportunities in Mexico Opportunities in Mexico Presented by: Linda Caruso Principal Commercial Officer U.S. Commercial Service Guadalajara 1 How People Frequently View Mexico 2 Mexico Handicrafts in 2015 3 Mexico at a Glance

More information

Small Business Development Assistance Programs In Wisconsin Mark Stover UWSP Extension Office of Outreach Education

Small Business Development Assistance Programs In Wisconsin Mark Stover UWSP Extension Office of Outreach Education INTRODUCTION Small Business Development Assistance Programs In Wisconsin Mark Stover UWSP Extension Office of Outreach Education Recently, Wisconsin received a grade of 'A' from a national association

More information

A Study of Initiatives by Entrepreneurship Development Cell in Indian Institutes of Technology (IITs)

A Study of Initiatives by Entrepreneurship Development Cell in Indian Institutes of Technology (IITs) IMR (Indira Management Review) Volume X, Issue 2, December, 2016 A Study of Initiatives by Entrepreneurship Development Cell in Indian Institutes of Technology (IITs) Madhura Wagh* 1 Lecturer, RSSP's Maharashtra

More information

Innovating big brands

Innovating big brands Innovating big brands Working with startups to create an innovative brand that attracts customers, business partners and future employees Telefónica You cannot transform working with startups into core

More information

Economic Development and The Role of Clusters: Implications for Policy

Economic Development and The Role of Clusters: Implications for Policy Economic Development and The Role of Clusters: Implications for Policy David A. Wolfe, Ph.D. Program on Globalization and Regional Innovation Systems Munk School of Global Affairs University of Toronto

More information

Innovation, Incubation and Acceleration: The national picture. Chris Haley Head of New Technology & Startup Research Nesta

Innovation, Incubation and Acceleration: The national picture. Chris Haley Head of New Technology & Startup Research Nesta Innovation, Incubation and Acceleration: The national picture Chris Haley Head of New Technology & Startup Research Nesta About Us 1 Policy & Research 2 Tools & Skills 3 Investments 4 Practical Programmes

More information

ERDF Call Launch Event

ERDF Call Launch Event ERDF Call Launch Event Welcome, introductions and overview of the day Kirsten Trussell, Head of Strategy & Policy at Coast to Capital Overview of Coast to Capital and the ERDF Programme Councillor Helyn

More information

FP6. Specific Programme: Structuring the European Research Area. Work Programme. Human Resources and Mobility

FP6. Specific Programme: Structuring the European Research Area. Work Programme. Human Resources and Mobility FP6 Specific Programme: Structuring the European Research Area Work Programme Human Resources and Mobility 1 Contents 2.2. General objectives and principles 2.3. Technical content and implementation of

More information

Economic & Workforce Development

Economic & Workforce Development Participants at a Tulalip Tribes job fair learning about economic development resources. Photo credit: Flickr/Tulalip Economic & Workforce Development Tribal nations and the federal government must work

More information

China Startup Outlook Key insights from the Silicon Valley Bank Startup Outlook Survey

China Startup Outlook Key insights from the Silicon Valley Bank Startup Outlook Survey China Startup Outlook 2018 Key insights from the Silicon Valley Bank Startup Outlook Survey LETTER FROM SVB CEO CHINA STARTUP OUTLOOK 2018 2 Startups enter 2018 with confidence For the ninth year, Silicon

More information

Chicago Scholarship Online Abstract and Keywords. U.S. Engineering in the Global Economy Richard B. Freeman and Hal Salzman

Chicago Scholarship Online Abstract and Keywords. U.S. Engineering in the Global Economy Richard B. Freeman and Hal Salzman Chicago Scholarship Online Abstract and Keywords Print ISBN 978-0-226- eisbn 978-0-226- Title U.S. Engineering in the Global Economy Editors Richard B. Freeman and Hal Salzman Book abstract 5 10 sentences,

More information

Recommendations for Digital Strategy II

Recommendations for Digital Strategy II Recommendations for Digital Strategy II Final report for the Pacific Islands Forum Secretariat, 11 June 2010 Network Strategies Report Number 30010 Contents 1 Introduction 1 2 ICTs: the potential to transform

More information

Innovation Monitor. Insights into innovation and R&D in Ireland 2017/2018

Innovation Monitor. Insights into innovation and R&D in Ireland 2017/2018 Innovation Monitor Insights into innovation and R&D in Ireland 2017/2018 2 Contents Page Executive summary 2 Key findings 3 The innovators 4 Innovation culture 6 Funding & incentives 8 What influences

More information

SCHEME FOR SETTING UP OF PLASTIC PARKS

SCHEME FOR SETTING UP OF PLASTIC PARKS SCHEME FOR SETTING UP OF PLASTIC PARKS I. Preamble The share of India in world trade of plastics is very low. The Indian Plastics industry is large but highly fragmented with dominance of tiny, small and

More information

Using Entrepreneurship Ecosystem to Promote Economic Growth

Using Entrepreneurship Ecosystem to Promote Economic Growth Using Entrepreneurship Ecosystem to Promote Economic Growth Globally, entrepreneurship is key in stimulating economic growth Contribute to Gross National Product Promote Investment Penetrate into International

More information

New Zealand Startup Ecosystem Analysis

New Zealand Startup Ecosystem Analysis New Startup Ecosystem Analysis 1 About this Research Early-stage tech startups are highly dependent on their surrounding startup ecosystem. If we can create healthier startup ecosystems, we can generate

More information

Nowcasting and Placecasting Growth Entrepreneurship. Jorge Guzman, MIT Scott Stern, MIT and NBER

Nowcasting and Placecasting Growth Entrepreneurship. Jorge Guzman, MIT Scott Stern, MIT and NBER Nowcasting and Placecasting Growth Entrepreneurship Jorge Guzman, MIT Scott Stern, MIT and NBER MIT Industrial Liaison Program, September 2014 The future is already here it s just not evenly distributed

More information

Horizon 2020 Financial Instruments for the Private Sector, Especially SMEs An Overview

Horizon 2020 Financial Instruments for the Private Sector, Especially SMEs An Overview Horizon 2020 Financial Instruments for the Private Sector, Especially SMEs An Overview Samuël Maenhout Policy Officer of Unit for "SMEs, Financial Instruments and State Aid" (B.3) DG Research and @ 'Bridging

More information

SME Internationalisation: Characteristics, Barriers and Policy Options

SME Internationalisation: Characteristics, Barriers and Policy Options 2014/ISOM/SYM/014 Session: 5 SME Internationalisation: Characteristics, Barriers and Policy Options Submitted by: OECD Symposium on APEC 2015 Priorities Manila, Philippines 8 December 2014 SME INTERNATIONALISATION:

More information

BACKING YOUNG AUSTRALIANS

BACKING YOUNG AUSTRALIANS BACKING YOUNG AUSTRALIANS INVESTING IN THE NEXT GENERATION Foundation for Young Australians 2016 Election Platform The world is changing at an unprecedented pace. Australia s population is rapidly growing

More information

shaping the future of finance

shaping the future of finance shaping the future of finance FIND OUT WHY LUXEMBOURG IS A GREAT PLACE FOR FINTECH Supporting Innovation PRIVATE FUNDING Local investors (Business Angels, VCs, Family offices, etc.) Luxembourg Business

More information

Government of India Planning Commission (LEM Division)

Government of India Planning Commission (LEM Division) Government of India Planning Commission (LEM Division) Subject: Scheme for New Initiative in Skill Development through PPP - Guidelines for Grants-in-Aid & Other Heads 1. Introduction The Planning Commission

More information

THE ITALIAN AGENDA POLICIES AND STRATEGIES FOR INNOVATION STEFANO FIRPO

THE ITALIAN AGENDA POLICIES AND STRATEGIES FOR INNOVATION STEFANO FIRPO THE ITALIAN AGENDA POLICIES AND STRATEGIES FOR INNOVATION STEFANO FIRPO ITALIAN MINISTRY OF ECONOMIC DEVELOPMENT HEAD OF MINISTER S TECHNICAL SECRETARIAT INNOVATIVE STARTUP ESTABLISHED FOR NO LONGER THAN

More information

Europe's Digital Progress Report (EDPR) 2017 Country Profile Malta

Europe's Digital Progress Report (EDPR) 2017 Country Profile Malta Europe's Digital Progress Report (EDPR) 2017 Country Profile Europe's Digital Progress Report (EDPR) tracks the progress made by Member States in terms of their digitisation, combining quantitative evidence

More information

2. Entrepreneurs possess highly specialized behavioral attributes that are distinct from those of non-entrepreneurs. (False)

2. Entrepreneurs possess highly specialized behavioral attributes that are distinct from those of non-entrepreneurs. (False) Questions for Chapter 2 True/False 1. Entrepreneurship is a process that can be learned. 2. Entrepreneurs possess highly specialized behavioral attributes that are distinct from those of non-entrepreneurs.

More information

Analytical Report on Trade in Services ICT Sector

Analytical Report on Trade in Services ICT Sector Republika e Kosovës Republika Kosova-Republic of Kosovo Qeveria-Vlada-Government Ministria e Tregtisë dhe Industrisë - Ministarstvo Trgovine i Industrije - Ministry of Trade and Industry Departamenti i

More information

SUPPORTING SOCIAL ENTREPRENEURSHIP IN THE HIGHER EDUCATION SECTOR: SUMMARY

SUPPORTING SOCIAL ENTREPRENEURSHIP IN THE HIGHER EDUCATION SECTOR: SUMMARY SUPPORTING SOCIAL ENTREPRENEURSHIP IN THE HIGHER EDUCATION SECTOR: SUMMARY WHY SHOULD HEIS SUPPORT SOCIAL ENTREPRENEURS HEIs have had to become more responsive to student needs as a result of a series

More information

Armenia s IT Sector and Opportunities for Regional Cooperation. Artak Ghazaryan, Armenia CAPS Project SARAJEVO, MAY 2010

Armenia s IT Sector and Opportunities for Regional Cooperation. Artak Ghazaryan, Armenia CAPS Project SARAJEVO, MAY 2010 Armenia s IT Sector and Opportunities for Regional Cooperation Artak Ghazaryan, Armenia CAPS Project SARAJEVO, MAY 2010 USAID CAPS Project Works with Four Clusters Tourism Information Technologies www.caps.am

More information

APT Ministerial Conference on Broadband and ICT Development 1-2 July 2004, Bangkok, Thailand

APT Ministerial Conference on Broadband and ICT Development 1-2 July 2004, Bangkok, Thailand Asia-Pacific Telecommunity APT Ministerial Conference on Broadband and ICT Development 1-2 July 2004, Bangkok, Thailand Asia-Pacific Broadband Summit BANGKOK AGENDA FOR BROADBAND AND ICT DEVELOPMENT IN

More information

INVEST. TRADE. PROSPER.

INVEST. TRADE. PROSPER. INVEST. TRADE. PROSPER. Financial Incentives that Keep on Giving: The Case for Vancouver Calgary Saskatoon Winnipeg Waterloo Region London Québec City Montréal Ottawa Toronto Halifax Financial Incentives

More information

INNOVATION POLICY FOR INCLUSIVE DEVELOPMENT

INNOVATION POLICY FOR INCLUSIVE DEVELOPMENT INNOVATION POLICY FOR INCLUSIVE DEVELOPMENT Carl J. Dahlman OECD Global Forum Paris July 1, 2014 Broad Definition of Innovation Innovation is a concrete application of knowledge as opposed to invention

More information

Facilitating Innovation & Entrepreneurship 2 ND GLOBAL FORUM ON BUSINESS INCUBATION

Facilitating Innovation & Entrepreneurship 2 ND GLOBAL FORUM ON BUSINESS INCUBATION Facilitating Innovation & Entrepreneurship 2 ND GLOBAL FORUM ON BUSINESS INCUBATION H.K. MITTAL ADVISER & HEAD NATIONAL SCIENCE & TECHNOLOGY ENTREPRENEURSHIP DEVELOPMENT BOARD (NSTEDB) DEPARTMENT OF SCIENCE

More information