This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13878508
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
The struggles and successes of India's start-up culture | The struggles and successes of India's start-up culture |
(about 17 hours later) | |
By Peter Day Presenter, In Business and Global Business | By Peter Day Presenter, In Business and Global Business |
Twenty years ago in the vibrant entrepreneurial paradise of Silicon Valley in the US, it was said that you would find a clever Indian toiling away in the backroom of nearly every successful start-up company. | |
Well, in the past two decades, they have come out of the back office, out from under the machines. | Well, in the past two decades, they have come out of the back office, out from under the machines. |
What the Valley guys say now is that every IPO or first public stock sale of a new hi-tech company needs an Indian name on the board of directors to give it plausibility for investors. | What the Valley guys say now is that every IPO or first public stock sale of a new hi-tech company needs an Indian name on the board of directors to give it plausibility for investors. |
But they are still mainly clever experts, not necessarily a new breed of business-starting entrepreneurs. | But they are still mainly clever experts, not necessarily a new breed of business-starting entrepreneurs. |
A forceful few | A forceful few |
The Non Resident Indian phenomenon is a powerful one. | The Non Resident Indian phenomenon is a powerful one. |
These clever NRI men and women now form a very powerful diaspora indeed. But at home and abroad, most of the very richest Indian business people have a traditional background, their fortunes are made from steel and raw materials. | These clever NRI men and women now form a very powerful diaspora indeed. But at home and abroad, most of the very richest Indian business people have a traditional background, their fortunes are made from steel and raw materials. |
The international reputation of India as a great online outsourcing service phenomenon rests on a small group of very clever entrepreneurs, not hosts of them. | The international reputation of India as a great online outsourcing service phenomenon rests on a small group of very clever entrepreneurs, not hosts of them. |
These people had to fight the stifling government and state bureaucracy of 20 years ago to establish their own international companies at a time when India was just emerging from 30 years of post-independence introversion. | These people had to fight the stifling government and state bureaucracy of 20 years ago to establish their own international companies at a time when India was just emerging from 30 years of post-independence introversion. |
Entrepreneurial encouragement | Entrepreneurial encouragement |
I went to India to get some sense of the start-up scene now, and I had the luck to run into a meeting of the Founders' Forum, which was taking place at the British High Commissioner's residence in New Delhi. | I went to India to get some sense of the start-up scene now, and I had the luck to run into a meeting of the Founders' Forum, which was taking place at the British High Commissioner's residence in New Delhi. |
The Forum exists to promote and encourage entrepreneurs. | The Forum exists to promote and encourage entrepreneurs. |
The UK business whizz Brent Hoberman, who made his name co-founding British start-up Lastminute.com, had organised this event as an inspiration network for Indian start-ups. | |
As these things always do, the Forum buzzed with encounters - and a sense that although business in India has been held down for years by politics and corruption, real entrepreneurial activity is now being unleashed. | As these things always do, the Forum buzzed with encounters - and a sense that although business in India has been held down for years by politics and corruption, real entrepreneurial activity is now being unleashed. |
That's what I heard from another Forum host, Rajesh Sawhney of Reliance Entertainment. | That's what I heard from another Forum host, Rajesh Sawhney of Reliance Entertainment. |
Indians are coming home in hordes, he told me, because they sense the opportunity in India. | |
Potential problems | Potential problems |
To outsiders, though, India's potential can seem muted. Big problems with transport, infrastructure, government intervention at national and local level, swarming chaos and confusion in the streets, blatant poverty. | To outsiders, though, India's potential can seem muted. Big problems with transport, infrastructure, government intervention at national and local level, swarming chaos and confusion in the streets, blatant poverty. |
Chinese visitors tell me they are often astonished that India is seen as a new top economic power, along with China. | Chinese visitors tell me they are often astonished that India is seen as a new top economic power, along with China. |
I caught up with an NRI who came back, and asked him about this Indian confusion. | I caught up with an NRI who came back, and asked him about this Indian confusion. |
Sharad Sharma spent many years in the US managing and founding technology companies. More recently, he was head of research and development for Yahoo! India. | |
Now he's back in Bangalore, using his overseas expertise to animate something called the Indian Angel Network, bringing together would-be investors with Indian entrepreneurs seeking backing. | Now he's back in Bangalore, using his overseas expertise to animate something called the Indian Angel Network, bringing together would-be investors with Indian entrepreneurs seeking backing. |
He says it's overcoming the obvious cultural, physical and infrastructural constraints for business that are the motive forces for the new Indian business people. | He says it's overcoming the obvious cultural, physical and infrastructural constraints for business that are the motive forces for the new Indian business people. |
In particular - he says - there's no climate of respecting failure. | In particular - he says - there's no climate of respecting failure. |
Cultural pressure | Cultural pressure |
That is also something Krishnan Ganesh is worried about. He's another entrepreneur who made money abroad, travelled in the USA and noticed the need for new education facilities. | That is also something Krishnan Ganesh is worried about. He's another entrepreneur who made money abroad, travelled in the USA and noticed the need for new education facilities. |
He came back to India and started an Internet teaching business called TutorVista. | He came back to India and started an Internet teaching business called TutorVista. |
Based in Bangalore, it provides one-to-one tuition on the Internet to students in (he says) 225 countries, but mainly in the USA, about 25,000 students in all. | Based in Bangalore, it provides one-to-one tuition on the Internet to students in (he says) 225 countries, but mainly in the USA, about 25,000 students in all. |
After a deal worth the equivalent of $120m last January, TutorVista is now 79% owned by Pearson of the UK, owners of the Financial Times, making Mr Ganesh a very serial entrepreneur. | After a deal worth the equivalent of $120m last January, TutorVista is now 79% owned by Pearson of the UK, owners of the Financial Times, making Mr Ganesh a very serial entrepreneur. |
Even so, he says there's terrific pressure on people to succeed in India, from parents, neighbours and relatives. | Even so, he says there's terrific pressure on people to succeed in India, from parents, neighbours and relatives. |
When he started his first business on his own, Mr Ganesh says the first question that friends and family asked was: "Why? Did he lose his job? Is that why he's starting a business?" | When he started his first business on his own, Mr Ganesh says the first question that friends and family asked was: "Why? Did he lose his job? Is that why he's starting a business?" |
Despite their huge potential, it seems that would-be Indian entrepreneurs still have an uphill path to tread. | Despite their huge potential, it seems that would-be Indian entrepreneurs still have an uphill path to tread. |
Previous version
1
Next version