Business Entrepreneurship is the ability and passion to develop, organize and manage a business venture, project along with any of its risks in order to make a profit with a higher sense of purpose and value creation for the world around us.
Entrepreneurship has thrived in India for decades, adapting and innovating with altering times. However, it only in recent times that it has assumed very important standing in Indian society because of the country’s emphasis on the discipline and its emerging importance in the world economy. The Country stands at an exciting juncture of demographic dividend and entrepreneurial aspirations. The former needs to be appropriately catalyzed to help millions achieve their entrepreneurial dreams.
In a way, entrepreneurship is still in its evolution. Numerous of them wait to be explored to strengthen the discipline. Research is an important tool to improve the knowledge base, establish evidence and draw inferences. A knowledge infrastructure in entrepreneurship will take away self-consciousness and go a long way in empowering entrepreneurs to display strong points to aid success. Developing new methodologies and practices is significant if entrepreneurship must gain ground.
With a large Indian population being under 35, a massive number of young Indians are expected to enter the job market in the coming days. In order to meet the demands of these job market entrants, the country will have to develop an ecosystem that will spur inclusive economic growth on a priority. While there has been continuous employment generation, the pace needs to gear up given the scale of India’s population. There has to be a quantum jump in terms of employment creation, which is possible by promoting entrepreneurship as an integrated model for inclusiveness and growth.
Entrepreneurship is perhaps the only catalyst that can provide meaningful occupation and subsistence to citizens of India. In India, entrepreneurship is still not a natural career option; entrepreneurs exist and operate in a context that is reliant on local, national economy and society. Entrepreneurs with business ideas have the possibility to transform society.
Entrepreneurship needs to be viewed beyond just as a process of starting a new business or entrepreneurship, more so, as an approach that fosters innovation and exploration.
However, on the flip side, this results insecurity as well and does not beckon as a career option to many at first. This mindset needs to be changed by mainstreaming entrepreneurship as a viable career path from early on.
It is heartening to note that with the advent of technology, the need for entrepreneurship is even more pronounced as ‘wannepreneurs’ who are trying to contribute to solve the problems of society they live in. In fact, the country will also have to focus on imparting special skill sets that good technologically inclined people to set up enterprises and create jobs.
Innovation must be promoted as a ‘process’ to support new enterprise creation. Continuous technological changes and the fourth industrial revolution will alter the landscape of the business ecosystem for the new generation would bring about disruptive changes. The key factor that will bring disruptive changes in the business ecosystem is innovation, on which the entrepreneur’s success will depend.
Recently even RBI panel suggested measures to develop micro, small and medium enterprises (MSMEs) who have proposed Rs 10000 crore government fund to support venture capital and private equity funds investing in the MSMEs sector.
At G20 Summit, Prime Minister Narendra Modi was also seen addressing Indians in Japan: 50,000 Start-ups in 5 years is the goal.
Technology is accelerating the creation of an interconnected, data-centric and self-optimizing world and India is no exception to this emerging trend. Emerging technologies like the Internet of Things (IoT), Artificial Intelligence, Virtual and Augmented Reality, and Machine Learning are impacting the enterprise business and our Indian society with the significant increase in use cases and deployments. The aspiring entrepreneurs will not only have to look at new-age fields such as Data Analytics, Machine Learning, Artificial Intelligence, Robotics, Nanotechnology, etc; But will also have to focus on innovation in traditional fields of manufacturing, agriculture, and services on which the growth of the economy is dependent.
Entrepreneurship involves juggling a lot of balls. There are several things to look out of – from finance, legal, human resources, products, and clients.
Creating somewhat which didn’t exist before that’s why entrepreneurship is very much about art, but doing business isn’t. Entrepreneurship is nothing to do with predictable Business Models. Business and Entrepreneurship are as different as painting Mona Lisa versus printing a copy of Mona Lisa. An innovator/entrepreneur creates the tools he wants to convert his thoughts into realism.
Entrepreneurship is a long journey of breaking the brick walls and expanding your comfort zone. The more the power you have to experience pain and fear, the quicker you will grow.
Your Startup will only grow to the extent that you grow. You can grow only by being on the edge of your mental and physical capabilities as a human being. It takes courage to live life on the edge and it’s addictive. Once you experience life on the edge, you will never go back. Growth will become a way of life.
Entrepreneurship is all about maturity to do work with the same passion, persistence, and enthusiasm even if there is a good chance that you might not get anything after completion of long periods of work. It can be pretty tiring and difficult to work for long periods with intense passion without assured returns. That’s why having a big dream helps you go through the grind that’s required today to reach where you want to go tomorrow. That’s what the best entrepreneurs in the world do. That’s the kind of Book Keeping you need to do, to make your startup succeed.
When you are frugal and economical, your investors will also take note of it and they will have a higher comfort level in working with you. Your customers will also take note when you use the money in a good and efficient way. It’s a cultural thing to be frugal and economical.
To Spur Economic Growth and Create Jobs, Successful Entrepreneurs and Small Businesses control their Business Cash Flow effectively. Cash is the capital required to run your business. You need to manage this cash to ensure smooth flow of operations. Here are some tips to manage your cash flow:
Record and Analyze Regularly: Recording daily transactions and analyzing them regularly will ensure you do not miss out on any transaction. Up to date records will help you in analyzing your cash position and also determines future cash requirements.
Manage Receivables and Payables: When you are paid for a product or a service, your cash flow is maintained. But when payment is to be received later, it creates a discrepancy in your cash flow. Therefore, you should receive timely payments, issue prompt invoices and keep a thorough check of pending receivables. Likewise, you need to manage your payables and pay the amount on the due date.
Reserve for Cash Shortfalls: One can never be prepared for unexpected expenses. You can set aside cash for such shortfall situations. Reserve cash acts as a safety net to manage your cash crisis and helps you avoid a penalty for late payments.
Hire a Chartered Professional Accountant: An entrepreneur has several business responsibilities. There is a possibility that you may forget to keep records of all transactions. Hiring an accountant can help you manage your cash flow and update your records. This can be beneficial once you start with your corporate tax planning.
Use Technology: You can use technology to keep a check on your transactions. There are a few online accounting software that can help you in keeping records of your transactions such as Zoho Books, Tally.ERP9, Quickbooks, Reach, Alpha Books and, ProfitBooks.
Captured the essence very well. Well done & Keep it Up!
Amazing content and well explained as there is a need for entrepreneurial spirit.
Good one Manish Ji!
Awaiting more such articles on the business community.
Sure!
Great
Dear Manish
First of all, I would like to Appreciate your thought process and thinking skills with which you have written this Article.
Secondly, the manner in which ideas of Entrepreneurship and different parameters revolving around it are mentioned and related with the help of bold points, few small examples, pictures is Highly Commendable.
Truly motivating words from you for the budding Entrepreneurs.
Very Well Articulated
Yes, The proposal to streamline multiple labour laws into a set of four labour codes is inspiring as the simplification of labour laws would reduce the compliance for the MSMEs and provide more room for the deployment of the workforce in their respective factories. Also, Announcements have been made for solving the issue of Angel Tax by introducing e-verification, speedy assessments of start-ups and redressal of their grievances, and relaxing some of the conditions for carry forward and set-off of losses for them.
Well articulated! Another aspect I see apart from being creative is the ability to destroy/close-business-successfully if didn’t turn out to be the idea it was meant to be. Successful entrepreneurs have this ability in my view to come out unscathed emotionally and financially out of their ventures before moving on to something new.
True that the strategic focus on the MSME sector in the Union Budget will act as a much-needed stimulus for their growth – Micro, Medium and Small Enterprises (MSMEs) are the backbone of the Indian Economy and the key drivers for its growth. This is evident from their significant contribution towards social and economic development through the Rapid expansion of entrepreneurial activities and employment generation. Over the years, MSMEs have broadened their domain by spreading activities across various sectors of the economy and providing a wide range of goods and services to meet domestic as well as overseas demand. MSMEs contribute to approximately 95% of the enterprise of India and makeup to 30% of overall GDP. About 20% of the MSMEs are from rural areas and as a result, they are a major source of the rural workforce. Over a period of 10 years, from 2006-07 to 2015-16, the total number of MSMEs have grown at an annual compounded growth rate of 6.4%. MSMEs contribute around 32% in GVA and employ around 111 million people and contribute around 40% in exports.
The Government’s focus on the MSME sector in the Union Budget announcements reflects a clear and focused approach towards the development and upliftment the sector in the overall economy. In the past few years, the government has taken various initiatives to provide a boost to the MSME sector, Prime Minister’s Employment Generation Programme (PMEGP) launch of web portal http://www.psbloansin59minutes.com, change in the MSMEs classification from investment in plant and machinery to turnover criteria, establishment of Export Promotion Cell, one-time restructuring of existing loans to MSMEs, Pradhan Mantri Mudra Yojna, among others.
The Government’s focused approach toward the growth of MSMEs is evident from various announcements made in the Union Budget for MSMEs, such as 2% interest subvention for all GST registered MSMEs on fresh or Incremental Loans, creation of payment platforms, extension of pension benefits, solving the issue of Angel Tax, speedy assessments of start-ups, and extension of Stand-up India scheme, among others.
Allocation of Rs 350 crore for FY 2019-20 under the Interest Subvention Scheme, for 2% interest subvention for all GST registered MSMEs, on fresh or incremental loan will provide easy access to credit for MSMEs, on fresh or incremental loan will provide easy credit for MSMEs, one of the major issues faced by the sector now. Further, the Government announced the creation of a payment platform for MSMEs to enable them to file bills and receive payment thereof on the platform itself. The creation of the payment platform will act as a booster to the sector, as the inflow of investments towards MSMEs will have a positive impact.
The budget has also proposed the extension of the pension an extension of the pension benefit to about three crore retail traders and small shopkeepers whose annual turnover is less than Rs 1.5 crore under a new scheme, namely Pradhan Mantri Karam Yogi Maanddhan Scheme which will promote old age protection and social security of workers in the MSMEs. As a step forward in ease of doing business, the government has decided to keep enrolment into the scheme simple, requiring only Aadhaar and a bank account, and rest on self-declaration.
Moreover the Government has also proposed to set up 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators in 2019-20 to develop 75000 skilled Entrepreneurs in agro-rural industry sectors by consolidating the scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE). This will unleash the entrepreneurial spirit in rural India and stimulate the growth of the MSMEs in the rural economy. The government has rightly focused on the importance of MSMEs in the economy.
Captured the essence very well!
Good Article!
Lovely Read
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Nice artigo! Obrigado..
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