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In the mid-to-late 90s, the Indian Institute of Technology (IIT) Bombay began considering establishing a school to encourage entrepreneurship. His KReSIT, an infotech incubator, was founded and funded by prominent alumni Mr. Nandan Nilekani and Mr. Kanwal Rekhi. What was the culture of entrepreneurship in India like at that time? Prof. Deepak Phatak, Emeritus Professor at IIT Bombay, recently shared an interesting anecdote about his interactions with entrepreneurs seeking incubation at KReSIT. During the selection interview, the person said that his father wanted to meet Professor Fatak, and he agreed without knowing the details, but then his father had the following concerns: That’s what I found out. How will he find a suitable bride? In a society where steady work is the norm, the idea that his IIT graduate, born into a middle-class family, would risk debt and social disrepute to choose entrepreneurship was unthinkable.
In the mid-to-late 90s, the Indian Institute of Technology (IIT) Bombay began considering establishing a school to encourage entrepreneurship. His KReSIT, an infotech incubator, was founded and funded by prominent alumni Mr. Nandan Nilekani and Mr. Kanwal Rekhi. What was the culture of entrepreneurship in India like at that time? Professor Deepak Phatak, Emeritus Professor at IIT Bombay, recently shared an interesting anecdote about his interaction with an entrepreneur seeking incubation at KReSIT. During the selection interview, the person said that his father wanted to meet Professor Fatak, and the professor agreed without knowing the details, but later learned that his father had the following concerns: Do you get it. How will he find a suitable bride? In a society where steady work is the norm, the idea that his IIT graduate, born into a middle-class family, would risk debt and social disrepute to choose entrepreneurship was unthinkable.
This anecdote illustrates an important but often underappreciated barrier to entrepreneurship: social opinion. Discussions about barriers to entry typically revolve around topics such as large established competitors or difficulty acquiring key resources. But almost everyone has an opinion about how individuals and communities should make a living. Experts often have well-developed mental models that address questions such as whether everyone should pursue entrepreneurship, who is likely to succeed, and how to approach it. Masu. Non-experts also have opinions on these issues, often with stronger beliefs than the experts. For example, family concerns about the possibility of marriage can influence an entrepreneur’s choices.
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This anecdote illustrates an important but often underappreciated barrier to entrepreneurship: social opinion. Discussions about barriers to entry typically revolve around topics such as large established competitors or difficulty acquiring key resources. But almost everyone has an opinion about how individuals and communities should make a living. Experts often have well-developed mental models that address questions such as whether everyone should pursue entrepreneurship, who is likely to succeed, and how to approach it. . Non-experts also have opinions on these issues, often with stronger beliefs than the experts. For example, family concerns about the possibility of marriage can influence an entrepreneur’s choices.
Public opinion portraying entrepreneurship as unattractive, “too risky,” “not for you,” or “you shouldn’t do this” creates a dilemma for ambitious startup founders. produce. They create a dilemma: adapt or run wild. Should we follow social opinion? Take a secure job or forge your own path and try your hand at starting your own business? A recent paper titled “False Entrepreneurship” published in the journal Entrepreneurship Theory and Practice finds that He says consensus can deter would-be entrepreneurs. “Social opinion is often the first barrier to entry that aspiring entrepreneurs face. Only once this leap is made are other barriers introduced. “Social opinions not only shape individual choices, but also influence the strength of entrepreneurship.”This collective mindset can foster the growth of nascent entrepreneurial businesses. Sometimes it can be a hindrance.
Will India in 2024 be better in this respect than it was in the late 90s? The answer is a resounding yes. If he were an aspiring student entrepreneur at IIT Bombay in the late 90s and traveled back in time to today’s campus, he would not be able to recognize it. We have a vibrant incubator, a school of entrepreneurship offering a variety of courses, an innovation center, laboratories and a large number of role models. There are also funding opportunities from government and the private sector. All this is happening in a country with ambitions to host the world’s most valuable startup ecosystem. Currently, the expert consensus at the highest levels of government, academia, and industry appears to be largely in favor of entrepreneurship. Leaders encourage entrepreneurial exploration and seek to reduce its risks. For example, Birla Institute of Technology and Science (BITS) in Pilani has announced that it will allow students and faculty members who want to start their own ventures to take a leave of absence of up to one year. If a business fails, students can resume their education and teachers can return to their studies. Barriers to entrepreneurship have been significantly lowered in some places based on societal input, and the results are visible. India has built the world’s third largest startup ecosystem in a relatively short period of time.
This ecosystem must continue to evolve. Barriers need to be lowered further, and positive social opinion about entrepreneurship needs to permeate all regions, socio-economic classes, and organizations. Statistics reveal disparities. For example, only 18% of unicorn companies in India are founded by women, and about 42% of unicorn founders are from IITs. The vast majority of venture capital funding still goes to consumer technology startups, and deep tech startups primarily survive through other forms and sources of funding. Unique barriers exist for aspiring entrepreneurs in second- and third-tier cities, villages, socio-economically disadvantaged classes, and conservative communities. Negative, biased, and biased opinions held by various stakeholders, including investors, families, communities, educational institutions, and government officials, contribute to these challenges. Realistic optimism goes a long way in building confidence and resilience in budding entrepreneurs.
Entrepreneurs need to manage society’s opinions rather than ignore them. They embody a combination of traditional wisdom and deep-rooted prejudice. Being a bad guy doesn’t mean throwing out the baby with the bathwater. In this entrepreneurial journey, success depends on striking a delicate balance between established wisdom and breakthrough innovation.
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