The Start-up Eco System - Opportunities & Challenges

R Narayanan, Member of The Chennai Angels
Thursday, January 8, 2015
R Narayanan, Member of The Chennai Angels
Established in 2007, The Chennai Angels (TCA)-erstwhile Chennai Entrepreneurship Trust Fund-is a firm that helps aspiring entrepreneurs to initiate their ventures through capital, mentorship, network, experience and entrepreneurial wisdom.

I have witnessed first-hand, the evolution of entrepreneurial activity and the eco system in India over the last 45 years. There was a time, when it was believed that large scale manufacturing could provide considerable employment in the country and that around each large manufacturing unit could be born a large no of ancillary units, which in turn would supply the large units with much needed inputs. The semi socialist governments of the past also believed that there should be a balance in the number of large manufacturing units that come up and that the state should regulate the inflow of funds into various sectors.

Now we know that the state should have allowed self-regulation by creating the right incentives. By stepping in, creating the large manufacturing units (Public sector), and by regulating the funds that go into the manufacturing sector (licensing), we created our own complex distortions in the marketplace. A whole generation or two of Managers have become adept at "managing" the environment with scant regard for the consumer. But all that hopefully, is about to change.

Create a hotbed of entrepreneurial activity and a huge number of jobs get created. Of course, the customer will be king and will reject substandard goods and unfriendly practices. Initially, only the mighty (those who respect a free market) will survive, but eventually the rewards will be bountiful.

Here are some daring thoughts for our new government to consider:

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