It’s wrong to think that India doesn’t have any entrepreneurial tradition or flair. We have an incredibly high number of them in the form of petty traders, direct selling agents, food stall owners and others.
Many Indians prefer to be employed somewhere rather than start off on their own, so we are actually surprised and happy when we meet someone who runs his own small business.
Well. I can see why you are surprised…but I really don’t think you should be.
Natural Innovativeness
Many people seem to believe that India doesn’t have enough of an entrepreneurial culture and that this culture needs to be consciously built up. I disagree. We have an incredibly high number of entrepreneurs in the form of petty traders and grocery shops, DSAs, small manufacturing and trading concerns, to name just a few. And most of these entrepreneurs are operating without the safety net of venture capital, or even bank loans. All that they have going for them is their natural innovativeness, willingness to slog it out, and confidence in their ability to manage customers and employees.
In my opinion, the people who think India doesn’t have enough entrepreneurial culture fail to recognize that these shopwallahs and tea vendors are also entrepreneurs, not just the software start-ups and consulting set-ups.
But parents, especially among the middle class, tend to dissuade their children if they say they want to strike out on their own…
Yes, it is true that the educated middle class tends to prefer being employed to being in business. That is perhaps inevitable given that this segment has traditionally not been financially secure and not been very adventurous either.
Many of these would probably become entrepreneurs if capital was more readily available in the form of loans / funding. But is it really desirable to create an environment of having more entrepreneurs who start their business not because they are confident they can make money through their business model, but because they are offered safety nets? Surely there are too many businesses that don’t have profitability anywhere on the horizon but are growing volumes depending on investment pouring in?
Hmm…ok. You worked for many years and then set up on your own. Can you summarise in 2-3 key points the difference between being employed as a senior manager and being on your own?
The short answer is that there is no major difference. I can say that with confidence, having seen both sides of the coin for long periods.
The good senior managers anyway spend their employer’s money as carefully as if it were their own, and the good entrepreneurs anyway have a consultative management style which takes into account the opinions of their colleagues and associates.
Oh, but surely it is different being your own boss? There is so much more freedom!
This is as far from the truth as possible. A person in a managerial capacity – be it in an organization or in one’s own business – always has several bosses.
Livelihood of team
Every customer is a boss – in the sense that the customer’s needs have to be treated as being of paramount importance. And every employee / team member is a boss as well – after all, any responsible manager / businessman should always keep in mind that the livelihood of the team members depends on the leader.
An entrepreneur cannot disregard the needs and wishes of the customers and employees. So you’re never really your own boss.
So there is no difference at all between being in employment and being business?
I didn’t say there is no difference at all….there is some difference, though not much. As an entrepreneur, there is a lot more work in the initial years in terms of ensuring legal compliance etc. There is also some degree of risk -- of losing the money that one has invested. But there is no real difference in terms of the attitude required, or the sense of accountability etc.
There are several people who would like to be entrepreneurs. Is there any advice for them which is very important?
You are right. One thing that I often come across in students and youngsters is a strong desire to become an entrepreneur but no specific thoughts beyond that.
I believe it should be the other way around. I believe people should first have a strong urge to make so-and-so product or provide such-and-such service, and then they should think about whether they can do that by working for someone or for themselves.
In the absence of this passion / urge, the desire to be an entrepreneur could simply be the desire to be one’s own boss or to make lots of money.
As I have already stated, one is never one’s own boss. And every entrepreneur who has created something worthwhile knows that the pot of gold lies at the end of a very long and rough road.
So, the more worthwhile ambition should be to do great work, or to create a great organisation, or to innovate and create a great product or service. The decision to become an entrepreneur should be the result of that ambition, not the ambition in itself.
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