National Knowledge Commission on Entrepreneurship

This sentence sums up the Indian spirit of Entrepreneurship: celebrate the ubiquitous Indian attitude of ‘Jugaad’ (a Hindi word roughly translated as ‘creative improvisation.a tool to somehow find a solution based on a refusal to accept defeat, and calling on initiative, quick thinking, cunning and quickly fulfill market demands at the lowest possible prices’) as an entrepreneurial trait that has been as much a part of everyday Indian living as its rich tradition of philosophy and speculation.

NKC conducted a survey on entrepreneurship (sample size of 200) and here are the key findings:

  • Key ‘Entrepreneurial Triggers’ are: Individual Motivations, Socio-cultural Factors, Access to Early-Stage Finance Education and Business Environment.
  • Prominent ‘Motivation Triggers’ are ‘Independence’, ‘Market Opportunity’,’Family Background’, ‘New Idea’, ‘Challenge’, and ‘Dream Desire’.
  • 99.4% of the entrepreneurs interviewed did not want to be in a routine job. 74% of the entrepreneurs interviewed received family support, underscoring its crucial significance.
  • ‘Family background’ became less significant with increasing levels of work experience.
  • Access to early stage finance from banks is perceived to be very difficult at the start-up stage but becomes comparatively easy at the growth stage.

On financing:

  • 63% of the entrepreneurs interviewed were self-financed, while other sources included banks, venture capital (VC), angel investors and state finance corporations. Among those financed by banks, a majority who approached banks (61%) did receive bank finance.
  • 50% of the entrepreneurs experienced difficulties while seeking statutory clearances and licences. Two-thirds faced hassles while filing taxes and 60%  claimed to have encountered corruption.

Read NKC’s recommendations below:

Read this document on Scribd: NKC Entrepreneurship
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