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Wednesday, September 21, 2005
The Extinct Indian Entrepreneur
Shrikant Patil writes: "Red Herring released a list of 20 entrepreneurs under the age of 35. There was one Indian Anurag Dikshit but not a single Indian from India. My take on this issue is the explosion in the job market with Multi-nationals and Indian companies on a hiring spree. You have to be in some sense a radical to ignore the comfort of getting a job and jump into starting a company. Another personal observation, even though there are a lot of VCs in India there is an acute shortage of angel investors in India. VCs pretend to be angel investors and waste the precious time of many budding entrepreneurs asking questions and documentation to be provided that is actually required in the first round of fund raising. Many who pursue a business in India are the ones who get funded by family or informal channels. Many of the businesses are just filling up for infrastructure bottlenecks rather than building new products or services. Banks also provide loans only if you can provide collateral, so the ones that can borrow money are ones that have some property or have money. So our nationalized and private banks will only lend money to those that have money not innovative ideas. I really call upon high networth individuals with good management experience to allocate some money to pure angel investing and mentoring young entrepreneurs. Instead of putting all their money in fixed deposits or pushing up the valuation of established businesses in the stock market or fuelling the irrational real estate boom. In Pune lot of the social discussions are around real estate just like Silicon Valley was abuzz with tech stacks in 97-99 boom. So if you are young, with a good idea, no high networth relative, no personal collateral you might as well take up a job and make the Indian entrepreneur a rare species possibly extinct."
Gladwell's Cellular Church
John Hagel discusses a New Yorker article by Malcolm Gladwell:
General
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One thing is for sure, it looks like big changes are around the corner in the way people access information. I keep reading stuff like this every other day. The above comment is for NETWORK COMPUTING :-D Posted by RKSomething very similar was posted by Prof. madhukar shukla of XLRI on his blog: http://madhukarshukla.blogspot.com/2004/07/clash-of-paradigms-it-is-fascinating.html Posted by Gautam
Network Computing
Dana Gardner writes that now's the time for the network computer.
China's Web 2.0
TechCrunch has an interesting commentary on the theme that C2C and VoIP is China's Web 2.0:
Nintendo's Revolution
The New York Times writes about Nintendo's new one-handed game controller: "While most controllers require two hands and are studded with buttons and joysticks, the new controller has fewer features, giving it the appearance of a TV remote control...The controller is intended for use with Nintendo's Revolution game console, the successor to GameCube. Revolution is scheduled for release sometime next year. It will go head to head with Microsoft's Xbox 360, to appear in November, and Sony's PlayStation 3, set for next spring...Nintendo hopes the simplicity of its new controller and games will make them more accessible, especially to first-time players." Russell Beattie adds: "The Nintendo Revolution controller will allow movement in 3D space. There’s all sorts of configurations and movement options, but in the pic above in a FPS, you’d look around by pointing the wand and move using the analog stick. Jumping via the A button (under the right thumb) and shooting with the B button (the trigger under the right hand) and swapping weapons with the trigger button on the left-hand analog controller. One review I read said it felt really natural - I totally believe it."
TECH TALK: Building a Better India: …and the Good
It is, of course, not all depressing. There are plenty of things to be happy about also. Take for example the wonder that is Tata IndiOne. This is a hotel which offers “Smart Basics” for under Rs 1,000 a night. I had read about the one in Bangalore and this time I stayed there. The hotel is in Whitefield, diagonally across from SAP. Considering that most hotels today charge upwards of Rs 2,000 for a decent room (probably a lot higher in Bangalore where occupancy rates are close to 100%), this was one stay I was looking forward to with expectation. The room itself, though small in size, has everything that a business traveller needs. The hotel has done away with room-service. However, there was no reason for me to pick the phone and call for any help. I paid Rs 900 + 8% tax for a single room. A double room would have cost me Rs 50 more. The breakfast buffet cost me Rs 50. I paid Rs 67 for a 30-minute WiFi connection (an hour would have cost Rs 100). Tata IndiOne is a great example of bottom-up innovation. They set the price point first, and then worked backwards, redesigning everything from scratch to make sure they reached the target price. Will I stay there again? You bet! And I hope they rapidly set up hotels in all the other Indian cities also. (There are plans to set up 100 such hotels across India.) Magarpatta City in Pune was another revelation. Situated at the eastern end of Pune, it takes some time getting to. But once you are in there, it is a different world. Artfully constructed residential apartments and glassy office buildings complement the greenery around. It is like being in a different world. Palm Meadows in Bangalore falls in the same category. The newly opened domestic airport terminal in Mumbai extension is another shining example of “if we want, we can do things well.” The irony, as a friend put it, is that even as we are constructing world-class private spaces, our public spaces remain, for the most, quite pathetic. Nowhere was this more apparent than the Adlabs in Kalyaninagar in Pune. Great interiors and exterior but just take a look at the road outside. Why, oh, why? This is the question I was pondering on my journey back home from Pune. On the one hand, as we see the quality of new homes and offices being constructed in the cities, they are extraordinarily good. And yet, when we look at the infrastructure around, it is depressing. One can understand that India is in growth mode, but that is no excuse for messing things up. My thoughts wandered to technology and us citizens. Is there something we can do pro-actively to helping build a better India? After all, we are all living in it! Tomorrow: What We Can Do Related Entries: [All]TECH TALK: Building a Better India: Tools for Action [September 23, 2005] TECH TALK: Building a Better India: What We Can Do [September 22, 2005] TECH TALK: Building a Better India: The Bad… [September 20, 2005] TECH TALK: Building a Better India: Prologue [September 19, 2005]
Tech Talk
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i guess the trend world over is to create this no frills but clean and comfortable hoteling experience.... i was in france for a few days and discovered such hotels which charge 30 euros including morning breakfast. i was then wondering if we could do the same in india everywhere. and in india rates could be lowered much further i am sure. hotel sizes also can be reduced and it can be made location specific with more outlets in the same city. |
Hi Rajesh, I enjoy reading your blogs regularly. I think the angel investment problem that you alluded to is very real. I started an distance education company with some friends in India 4 years ago, the biggest challenges we faced were raising seed capital. Most of the money we put in were from our savings. Our inability to raise funds resulted in not being able to service all requirements of our customers.
Now, all our friends are working for big companies. We are facing the classic dilemma mentioned in http://www.thetechjobber.com/2005/09/19/considering-a-startup-opportunity/
Do we work at a startup that is going to have poor cash flow and lot of struggle for a long time or just work for a big company where we have good bonuses and stock options.
In my opinion the fact that the big companies are paying so well, is killing our entrepreneurial instincts.
Posted by Ravi SrinivasExcellent Blog - keep it coming.
I am in the process of starting my own product company. The struggles are very real in India. There is absolutely no support structure - either in terms of office space, incubation facilities, finance, or industry forums.
I was disappointed that a requirement to become a member of Nasscom is to show proof of minimum 5 Lakhs turnover. As a startup who are still in the beta testing phase - it is going to be quite a while to see some revenues, simply because we are still not selling our product.
Even while looking for office space using our own pocket money - we get questions like - "who are your clients ?"
This is an environment where service companies are treated like heroes. They have failed to create an ecosystem where high technology startups can bloom. Even in the hardware area - big IT companies import directly from abroad due to their STPI tax free imports. Startups also are not able to get STPI clearance - simply because we just cannot show the minimum turnover in our balance sheets.
I have come to the conclusion that tech startups and IT services are two vastly different animals in India. There is simply no encouragement or support either from the government or the cash-rich IT giants for budding companies. If you have a "requirement" from a US client - you will do well to come down to India and start off. THe entire system is designed for people like you. On the other hand - if your schtick is to develop a product, forget it. It is doable - but really really tough.
As for me, I am sticking it out here in Chennai. I need about 2000 Sq Ft office space at a reasonable rate. Although there are 20 IT Parks here, there is not a single incubator or even office space with reasonable cost. I will look on.
Posted by Vivek RajanI recently left a great job with a top MNC to start my own tech company called Uzanto in New Delhi(along with some US based partners);for me the added challenge was that I was moving from a sales/marketing position in the old economy to the new economy.
In my opinion, when you decide to become an entrepreneur, you are contracting with destiny to take on these challenges head on ? Personal motivation and drive is the key to the decison about jobs v/s entrepreneurship.If you are motivated, then problems such as infrastructure bottlenecks, govt support,funding et al are actually what should get your entrepreneurial juices flowing. Every budding entrepreneurship has faced these in the past and will continue to face them in the future, so why complain about the environment ?
Posted by Amit RanjanI recently quit a great job in a top MNC to start a tech company called Uzanto in Delhi ( along with some US based partners ); for me the added challenge was that I was moving from a marketing/sales position in the old economy to a entrepreneurial position in the new economy .
In my opinion , the moment you decide to become an entrepreneur , you are making a contract with your destiny to take these challenges head on . Personal motivation/drive is the key to the decision of job v/s startup. If you are motivated enough, then problems like infrastructural bottlenecks , lack of support or funding et al are exactly what should get your entrepreneurial juices flowing . Every budding entrepreneur has faced these in the past and will continue to do so in the future.These are exactly the issues that make entrepreneurship inherently more challenging and involving than a job.
www.amitranjan.com
Posted by Amit RanjanHi Rajesh,
Things I agree with :
1)Banks not caring for any if you dont have any
collateral/property.We have tried many time but to
no avail. It works a simple formula of More you
have more you get
Things I dont agree with
1) More Jobs is not equal to Less entrepneurs. Because peole who leave jobs to start only for money looses the sense of entreprenurship itself.
2) Infastructure problems exist a bit in terms os transport etc.... but Its damn easy to start in india than anywhere else - since the system is so much in chos that one hardly noticess you when you are small
3) One needs to struggle for 2 years minimum - investment/no investment .... after all investment is no free money... its mostly an excuse to escape from failed startup -- because here is where you need to innovate.
I have many friends who have started up -- not just in software but in catering , travel(our company) , garments, education etc..... i see explosion every where.
anurag mehra
Posted by anurag mehrazice holidays
http://www.ziceholidays.com
I don't think we can blame the lack of entrepreneurial activity in India on the hiring spree of IT companies alone. If that was the case why are we seeing this Where are all the European web startups? . It is something more cultural, people do not want to take risks and the society as a whole dosen't encourage risk taking behaviour. As as long as we live our lives by the society's rules this is bound to happen.
Posted by AnanthI kind of agree with the last comment. The characteristics of people who get employed by IT service companies and those who form startups are generally orthogonal (unless you are starting a new IT service company!).
Maybe it is a cultural issue, in terms of risk taking maneuvers. http://www.changethis.com/17.HypomanicAmerican
Maybe the indian milieu does not offer varied opportunities. Kind of hard to imagine a Dodgeball, Flickr or any of them Web 2.0 mashups. Developing and selling a product requires a complete ecosystem. Sadly, there is not much of that to be found here.
Posted by Manoj SatiWell.. I guess if you are one of the guys with a cushy job and are facing a dillemma of whether to quit or not but at the same time like entrepreneurs you can support them. Maybe you could set aside some money for angel investing just like some people set aside some money for charity.
Tarun Anand
Posted by Tarun Anandhttp://www.theperfectfuture.com
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