Entrepreneurship in India

With due regard to Mahesh Murthy and his encouragement for youngsters of India to start new ventures, I would like to write on the similar subject. If it helps you, it would be my pleasure.

[ Indians can very well understand Hindi and being an Indian I have proud of my mother language, in which I would like to give some references, words, sentences, poetry etc. to add the relevance. Others kindly ignore, if you can’t understand as the principal subject matter is in English only.]

1. Dreams, Aims and Ambitions:

Every young person who is passing out from college has lots of hopes and dreams to achieve financial and personal aims. Some must be deciding about jobs, areas, careers etc. etc. Some may be thinking of joining old family businesses or starting their own like that. To prove that you are worth and you are knowledgeable. This is the first level that you start to sketch your ambitions. You are either influenced by your family, friend or somebody to do something which they want, expect from you. You may have heard “Papa kahate hain bada naam karega..”

This is the time when you have to decide the aims and objectives of your life. I never used the word “career”. It means “what do you consider is necessary to bring happiness in your life.”

Ambition is only in respect of career and you have to decide and balance aims and ambitions which you can’t forget in future.

2. Definition, meaning and elements of entrepreneurship:

All MBAs and commerce graduates can definitely answer the question of what entrepreneurship means. But can all understand? Where the word came from? It is French word means one who does business. Though what is involved in business? What is the key element of business? Can you define it in one line? In one line, it is an activity to earn profits from products and services. What are the elements of Entrepreneurship? There are many elements like capital, products / service, management etc. but the key element? It is the risk of gain or loss. If you gain, you will get more that the cost of your cost, you are earning, otherwise you lose. So Risk is the main element. The risk is also whether you will be getting equal to what you are putting into the work.

3. The elements of your career:

To start your career there are few questions you must answer and that are what you are going to do? Where you are going to do? Why you are going to do? How you are going to do?

It is not necessary that you can do business with team. But you can also be an entrepreneur of your own and make your own team. Or you can gain recognition by your own way and get recognition like research scientist like Newton or Einstein, if you are more dominated by “why” factor.

Your learning on the job will give you human expertise to handle and manage people in the organisation and outside the organisation. Your knowledge and training in class I institute of the world also can’t give you the insight on this subject. And the human skill is most important to decide the line you choose and risk at. When you are out with a degree, you know every other person only at face value. You have to be well aware of that.

4. The long term factors of human psychology:

No person can stand whole life at one level of work. Either you talk about the job or business. Entrepreneurship is also affected by human needs which are catagorised in 5 levels. They affect every individual’s decisions. Can you think and answer? Management students may answer. What about others?

Well, I can narrate it in sequence as below:

1. The first human need is of food, clothes and shelter (“roti, kapda aur makan”, which was an old hindi movie -:) )
2. The second level need is family, relationship and sexual satisfaction.
3. The third level need is recognition, authority, appreciation from your subordinates, colleagues etc. in working environment.
4. The fourth level need is social recognition, your name, fame etc.
5. The fifth level need is spiritual needs, to feel satisfied of what you do.

Your personal life is affected if you postpone your personal decisions for your career risks and decisions. You need to make wise decisions in the start itself.

5. Entrepreneurship and Recognition:

You may think when you are exposed to outside people, you are having prestige but when you are working in a company, you don’t have any recognition. If you are thinking so, you are wrong because, if you are in a business, your office may be start-up. The no. of clients or people you can handle may be small and the same number of people will be in your office if you choose to work to take experience. The ratio of people supporting you and opposing you may be 50:50. In your office you may get help either from A, B or C. But in business .. its you who will be responsible for every right or wrong decisions and You will not have time to think so much in detail about practical conclusion.

Now today everything is time bound. Today it is said “money saved is profit earned and opportunity lost is money lost.” Today the world has made everybody accountable for success, achievement and failure. If you miss anything, a sweet talking person will hold gun at you. Be ready.. Things have changed after the information technology has been introduced. More sweat, more and more productivity and pressure started since 1985 and after that when the computers which became part of business activities.

Earlier, for general people computer technology was looked as a tool that would make less errors in the work, better presentation, less space, faster work, avoids repetition, some new way of databases etc. etc. And today it is controlling your neck. Now computers technology has made you think of only one thing i.e. work 24 x 7 x 365. If you are early, nobody will question you, but if you leave early, everybody will question you. If you do more than you can deliver, they will not raise your take home, but if you can’t do due to some reason, your “show cause memo” will be ready.

There are companies which set exploitable level of targets and today every company sets deadlines for everything. If you can do it, it is fine and if you can’t do it, you have to you may be treated as criminal. To vouch the same, you can ask Mahesh Murthy. For him, I am a criminal. To check the facts, you can go and talk to cyber crime investigation cell, Mumbai.

If you start any joint venture, your capitalist will have full control of your income, expenditure and all the details. If you hide any detail, your project can be treated as cancelled saying you cheat them and if you disclose the details, your own security is at risk. Do remember this in case of Indian Capitalists. The joint venture with an Indian firm is something else after opening the envelop.

Will you check the history before entering any agreement with a venture capitalist? Or blindly agree to sign? It is a warning because in India cost of a body, mind and soul is very cheap. Any capitalists can afford to substitute you and your talent, but you can find it difficult to get the standing if you lose the credentials of your biodata. Today to spoil one’s career, people can go to any limit as before hiring on any job there is a cross checking and verification of your reasons of joining; leaving etc. etc. and those who have vested interest to let other slog for them like a donkey will never let this opportunity to go. (It is Black, BOLD, Underline and font 24 size for your career). It is the price you pay in an overly populated country.

There are people who have opinion is that woman doesn’t need to get equal work, equal pay. They are not compensated in firms and Industries. [E.g. Mahesh Murthy from the year 2006 till today never released any cheque neither from Geodesic Ltd. For the business concept of businessbuddy.com nor anything from Seedfund.in. Instead when I demanded seedfund.in’s partner’s right, value, Mahesh Murthy started another version named as “seeedfund”. He can change cars in every 2 years saying that he is working XXX of that business. He can change businesses in every three – five years. E.g. passionfund.com, seedfund.in, seeedfund.com etc. etc. Like a software upgradation, capitalism is also redefining itself. There are 4 more VCs like him named as Anand Lunia, Bharti Jecob, Pravin Gandhi and Paula Mariwala, along with Mahesh Murthy in Seedfund who together have made this software profession of white collor as collorless. Financially sound but mentally bankrupt Indians who don’t have any approachable address. (the address at Santacruz Pinstorm.com is registered address of Seedfund.in where watchman and receptionist and he himself can give a kick on your AXX if you are unwilling to do what the four want. As the pinstorm is another company with Manisha Lakhe, she is one who available as rented director and involved in sheltering the habitual offenders to create conspiracy along with Mahesh Murthy and others. ]

Reason : I am single, alone, young, attractive and not virgin woman having good education and self dependence and without dependents. For men why a single woman has to have so much money? Why she should be financially secure? If a woman will be financially more secure, she will compete him at more reasonable ground. And if the woman who becomes more of industrious type, why she will take interest in having physical pleasure at their terms and condition? The money is requirement of life and for woman has to bring up children rather that being a career minded person. Hence they can decide whether I shall have authentic right to earn money and bring child or be a sexy prostitute and keep of theirs to give birth to illegal child and it bring up? To dictate his terms Mahesh Murthy has cancelled attending my calls. He also also stopped my emails from all his email accounts. He has resident director Manisha Lakhe who doesn’t have any knowledge of business and industry, as she is a poet and writer and bringing up a child has also closed my emails to her. Like me she is also not a virgin. Tomorrow they can block your emails and phones also if you fail to meet their demands of softy, romantic and love talks which are out of view of any contract. Like in a temple, unless you give “DAKSHINA” (a nominal amount of few coins which is given to the priest, the lord can’t be happy, here the lords of venture capitalists will also not be happy if you walk out without giving them “DAKSHINA”. This is advance before signing any contract with woman. May women kindly keep their “assets” safe because anyone can “like” and “possess” it. Can men check that if the resident director Manisha Lakhe also has assets worth possession? This resident director never comes to the office other than signing the final reports. And you can’t approach them at their unknown location fort.

Till today, Mahesh Murthy Manisha Lakhe and other 4 partners avoid coming in front of me and signing any contract. Modern VCs want everything without writing: in every city, town and village. Like everyman he is and like every woman I am. Whatever was private, will be free and open and he can take it mutually from me in the public. You must remember Indian Venture Capitalists are very broad minded.

6. Capitalism, Socialism and Marxism – the types of economies.

In U.S.A. the economy is capitalist. There are people who start business, mostly all are privately owned companies, there are no Govt. companies. The shareholders and directors are there to share benefits.

There were countries in which there was Marxism which says that all the resources of the country are of Govt. and they have right to keep or decide how to use it for all the people of the country. The countries have their own factories. They decide the rates, prices etc. of their nation.

Social and welfare state: India is a social and welfare state. Here people can have their own businesses and the Govt. also runs and controls some spefic industries for the welfare of the citizens.

As per their nation, the scene changes. A business in capitalist country will be on 50:50 ratio of give and take. The rights will of those who have more power. Either of Gun or in hands.

In communist countries Government will fund through their agencies.

In welfare social, democratic and republic state of India, every kind of freedom is available. A capitalist can form a business. A Bank can give loans and for some businesses, Govt. also has its own funds and run the industries like petroleum, mining, energy etc.

So, for every deal between two, and equal power do you have good physique and power of gun to keep while signing and reading any agreement when you know if the others are like Mahesh Murthy and other 5 live in places where a mouse also can’t reach.

7. Recession and its effects in society and on individual:

Every business is affected by the outside forces. If you are in business, you can also be affected by global economy. If your business comes from U.S. and when they are unable to pay you due to their economy, your business in India will also not have growth. In last 10 years there were lots of ups and downs in the economic trends. The economy is not stable. In earlier decades there was steady growth and progress. But now it is forward a backward. You can have a day when you can celebrate an event in 5 star hotel, but a situation may also come when you will have to end your resources and sell off your car or properties to pay your dues. The inflation has increased in the society due to high paying salaries and global money coming in India. Today the disparity between classes of people has deepened a lot which is creating social imbalance. You can also be swinging between the two if you start at early stage.

8. Venture Capitalism V/s Banks:

If you have full knowledge of business management and your own concept or industry, you can approach banks for taking loans and at a subsidy from Govt. also.

Banks also can give you loan provided you have some fixed assets as collateral security e.g. like land, building machinery etc. Banks also can give you loan easily if you have at least 3 years of previous business. Banks don’t interfere in your decision making as long as you regularly pay your small EMI regularly. Your business credit to the bank is 90 days. If you can’t pay the dues, Banks can realise their amount from your assets.

The venture capitalist can interfere in your business policies. They are directive when you have not experienced the business risks but again they can claim a bigger share in the profits than you.

The Venture capitalists can meet you in a coffee shop and will take your signature on the papers and disappear to keep you wonder. There was a time when I missed a train. I saw a man calling me saying luxury bus is going to the city. I did buy believing that this bus will leave immediately in 15 minutes. To my surprise two hours the bus was on the stand and when I got down getting my money back, he had folded his table and had disappeared in the thin air. I could not get the refund but I had to create such a scene that if the bus doesn’t run in another 2 minutes, I will bring kerosene and put it in blaze. That time it started. Do you have that risk of losing your money, security, peace of mind and facing the situation? I guess, you will be like other passengers who calmly surrender themselves and don’t ask for your own rights. The VCs can also play same tricks, like the ticket seller.

9. The Law structure and your rights in India:

In India, even if you have taken due diligence to complete the procedure, and despite all precautions if you are hit by the lawlessness, you can’t get justice easily. In civil or criminal, the delay is frustrating and the dates bind you from moving and deciding about any change in your life. You can’t claim interest on the period of judicial trial. But if you have borrowed money, till the time you don’t pay, they can take interest on it leaving you penniless. The same is the risk of losing when you are doing business and when you are alone.

When you have time to fight against your VC or appoint an arbitrator and the VC will come to the Arbitrator and agree? NO.... The VCs can go and spend 6 months in Mauritius etc. and you will think you have to pay next month’s credit card’s bill, you have started home loan, you need to pay EMI and you are fixed with monthly bills. Has any VC given a commitment that they have given you advance cheque of 6 months at least as assurance that they will bear all expenses including your insurance premiums etc.? This kind of security is out of question. VCs are settled and you are searching base for keeping your foot. That is the difference of status between the two classes.

10. Risks, Entrepreneurship and you;

As I mentioned above, the Bus experience, I realised what would have been wrong if I would have waited for the train to come? Ulitmately, the fare was less, the chance to reach on time was more, if the train meets with accident, the Govt. can give compensation or can give a job to the kin of deceased and you can demand this through the legislative representatives. The life was more secure. The same will be in case of start ups. You should have ambitions, dreams like me to make this world as better place, to reach to moon, to be more civilised and stick to your principles which you and I read in the school and colleges but every dream to come true needs time and stage in life. The beginners must achieve at least 4-5 years of working experience and later they should start their business. They should make their foundation strong before jumping into that water where you don’t know the water currents and depth. You need to add more skills so that you are adaptable in different situation. This can keep you away from low end of insecurity. Like Mahesh Murthy, who was earlier and employee of company for few long years, Narayan Murthy started Infosys after working in company for long many years, they started their own business with their own capital. Has Mahesh Murthy disclosed that because he created his base, he has funded his own ventures?

Do you know that children of famous entrepreneurs send their children to work not in their own company but in other’s companies to live an employee status before entering in their own businesses? If you don’t, you can cross check. Don’t believe everybody blindly. When you see a ship, you must know that its ¾ part is under water and 1/4^th is outside. The same principle is applicable to your ship of business.

Finally, the astrology also helps you in deciding your career. You can be fortunate enough like Micheal Jackson or Mahesh Murthy, Narayan Murthy, Dhirubhai Ambani, etc. to create your destiny if your stars favour your chart. Otherwise you will not be able to achieve your dreams. You must remember that slow and steady wins the race.