The most rewarding and most giving act in any economy: Entrepreneurship

It is a faith, a credo and a passion that we live by... it is what our institute IIPM is all about... it is what I’ve been telling oft en through my editorials (Readers of our sister publication, The Sunday Indian will recall our cover story on the same subject, Delhi On Fire; refer TSI dated 19th November, 2006). We passionately believe that entrepreneurship is the most important voluntary contribution of any citizen towards his country. It is more important and charitable than the biggest act of charity; it is a great act of giving and amazingly greatly rewarding; perhaps much more than an uninvolved act of philanthropy.

Yet, time and again, it is entrepreneurs who are penalised and looked at with suspicion (even till a few years back, parents usually had second thoughts and doubts about marrying their daughter off to a businessman; – although that has almost changed now). They are the ones whose shops are sealed and closed down in Tughlaqi fashion as if they are the slimy profit makers who deserve no mercy; though the stark fact is that the bigger they are, the bigger is their contribution to an economy. The Supreme Court goes on to say that the first to be penalised should be the big fish. I will be the first to admit that many people (entrepreneurs) are involved in wrong things at times while expanding their businesses; but not in a bigger proportion than people involved with the judiciary, police, politics, media or even people at decision making positions in other professions... What is forgotten in this nationally retrograde and regressive thought process of suspecting the business community is the fact that it is entrepreneurs that create wealth and jobs. They are doing what the nation has failed to, i.e by still not making the right to earning a living a fundamental right. They plug this gap as one non-committed government after the other simply abdicates its responsibility to provide unemployment allowance in this country (and thus run away from the basic responsibility of a government of providing jobs apart from health, education and justice). It is this entrepreneurial community which has still kept the name of India flying high around the world by creating growth and employment – not with support from the government but despite the government.

It is high time that the governments in India realise the beauty of entrepreneurship and have supportive policies for them (and not just money laundering SEZs and other such policies for their own individual benefits). By supporting entrepreneurship, specially small and medium scale industries, they will make their own lives easier, for all that they are supposed to do but don’t, the private entrepreneurs can take care of! China does the same and the Chinese miracle is to a large extent thanks to its small and medium industries. In India, however, despite big talks around globalisation, the real support for SMIs is completely missing. Government’s globalisation focus revolves around big industrialists and bigger foreign multinationals like the Wal-Mart etc. The reasons are obvious.

While we celebrate the rise, fall and rise of the big Indian entrepreneurs in this special issue of Business & Economy, my hope is that it would serve as motivation for the government and people alike to believe in the beauty of entrepreneurship. And not only does the Government start looking at businessmen with more respect, but individuals also start realising that there is nothing that can be more rewarding than the act of entrepreneurship.

Is corruption really an issue?

(column by R. D. Narayanan, Chennai (T.N.))

This is with reference to the article, ‘Of prostitutes…’ (B&E issue dated November 30, 2006) which exposed the corruption that prevails in China. It really is appreciative that while on one hand we only come across umpteen articles that praise China and its super-growth, B&E has actually exposed what needs to really be done in the country. It is really surprising that over 10,000 officials were convicted of corruption in just the first six months of the current year and to further consider that being in a country supposed to be actually booming by the meaning of the word. On the flipside however, if we take a look at the ‘Transparency Index’ that is released on a yearly basis, the most corrupt nations are branded as developing economies and are also the ones that are experiencing maximum growth. So is ‘corruption’ really a problem that should be addressed not just in China, India and other developing economies or will it just settle down as these economies become developed? The situation really is paradoxical and should have been addressed in the article.

(End of R. D. Narayanan column)

Intel, where's the inside?

(column by Shalini Singh, Chandigarh)

I really liked your B&E Corporation story on Intel Corp. titled ‘Intel Outside’. Firstly, I loved the heading itself as it clearly showed how Intel is only focusing on what lies without than what should actually be their key focus, i.e. within. Secondly, they should seriously think about manufacturing in a land with cheap labour and cheaper total costs such as India. With the western economies outsourcing their customer service jobs to the low-cost Asian nations, the company should seriously delve over whether they only intend to promise themselves with no concrete plans to do what really is necessary. The motives of this giant really seem myopic and the danger signals seems pretty clear with falling segmentwise revenues which has only headed southwards over last year. Undoubtedly, for Intel to rise again and reign supreme it is imperative for them to formalize the right strategies for all high-growth markets – especially India – otherwise its shrewd competitors like AMD, etc. will only be too happy to take advantage of the sleeping giant and erode its market share away! Once again, a brilliant report with an equally brilliant execution that is among the best so far. A truly brave effort that uncovers the most grave situation for the global major.

(End of Shalini Singh column)

Why I’d hate to miss it...

(column by Evelyn Brown, Aukland (New Zealand))

Having heard a great deal about your magazine, I finally decided to order a copy thorough a cousin of mine who lives in India. Today, I make sure that she sends me a copy every fortnight. What I love about your magazine is that it is as relevant to an Indian as it is to a foreigner. Its policy and corporate stratagem sections are indeed the best, far better than the ones I read before. All I can say is that it is a product manufactured in India that’s truly world-class, simple reason why I'd hate to miss any future issue.

(End of Evelyn Brown column)

Warning: Chinese Noodles Poisonous!

(column by Rani Chhatwal, New Delhi)

Your cover article on Hu Jintao’s visit to India (B&E issue dated November 30, 2006) was really fantastic. I want to specially mention that you were the only publication that actually talked about the silence of the Dalai Lama and all along you have mentioned exactly how the Chinese are not to be trusted – and true it is! Why are we to trust them? They have always been too cunning for the silent Indians and even in the past have given importance to issues only based on how useful it proves to be for them. Its high time that we too start thinking about how relationships can be fruitful to only us rather than just initiate issues for the benefits of others. However, one thing that Indians should learn from the Chinese how trade is to be conducted.

(End of Rani Chhatwal column)

Bush... Right here on earth...

(column by Deep Rathore, Lucknow (U.P.))

It has always been said that truth cannot be hidden for long and that one day, it will come to surface. Really, with Saddam Hussein doing wrong deeds, he has been acquitted of it and is now facing what he rightfully deserves. But just as your article says, what about George Bush who’s murdered more than 4425 times the count of humans that Saddam is accused of? My thought on this one is that he should also undergo a trial under the strictest of international laws. There should be an international panel of judges and it should be a fair trial. Certainly just as Saddam is being Sad‘damned’, Bush should also face the truth, right on earth, for even under the most lenient laws, killing a hair-raising 655,000 lives would not be forgiven!

(End of Deep Rathore column)

Exposing the hidden truth...

(column by Mukesh Chaurasia, Dibrugarh (Assam))

Your B&E Sector story covering the auto components sector was truly an eyeopener, exposing us to what was not very obvious. While the world around talked about the auto industry and its brilliant prospects, there were hardly any that might have actually realized that the auto-components sector too carry some weight. Then there is also the truth that the global auto majors which are mulling over a serious relationship with sourcing their components from the Indian subcontinent are actually the ones with the best prospects. Take a look at Toyota, with its $197 million worth of sourcing from India; it is also the auto company that is the fastest-growing. Certainly, it all depends on which auto company will be sourcing the most from India in the near future as the country has a brilliant mixture of expertise, technology and low-cost manufacturing facilities – a combination hard to find on any foreign soil! And can we ever forget the sheer fact that even for the Indian consumers, cars are getting friendlier by the day – both in terms of variety and price?

(End of Mukesh Chaurasia column)

The Fallen Giant...

(column by Parul Singhania, Faridabad (Haryana))

I read your story, ‘Code Dark’ analyzing Kodak’s eighth consecutive quarter of losses. It is indeed a matter of shame that the very ‘pioneer’ of photographic technology should suffer while the world around it is making merry a century after it gave to the world the true power of photography! Perhaps, this serves as a realisation that just sitting over old technology only makes the going worse for any behemoth as such. While the world around it switched rails to hop onto the digital bandwagon, Kodak obstinately carried on increasing their analog capacity – turning a deaf ear to all warnings. And here we are today, witnessing the crumbling giant citadel called Kodak! Today, it has decided to change platforms, cut down jobs and do all to revive its glorious past. But the question really is whether it will be enough to save it from the ‘code dark’ that it seems to have discovered a century after it taught the world how to click photographs.

(End of Parul Singhania column)

A Magic called B&E...

(column by Sneha Jha, Namakkal District (T.N.))

Since I am not very much a person interested in business, I did not quite believe many when they told me how interesting and informative this magazine is. I just decided to try it one fine day to improve my general knowledge and believe me, since then, I have been addicted to it. The various sections that are so evenly distributed are just spellbinding. The most interesting section in your magazine is the ‘Lifestyle section’ which is interesting as well as very informative. The ‘Scrutiny and Politics sections’ too are also very informative. The ‘Fortnight section’ is the crispiest with the widest coverage. Kudos to your designers for delivering what is nothing short of breaking all standards of being world-class. Thank you for giving to the world, a magic called B&E!.

(End of Sneha Jha column)

To bid or not to bid higher? That’s the question Mr. Ratan...

(column by Deepesh Pradhan)

I loved the forthright cover story, ‘Tata Steel is dead…” (B&E issue dated November 16, 2006). What was truly electrifying about the coverage was the information that was made available based on first-person experiences. Most amazingly, none would imagine the fact that Tata Steel is changing so very rapidly. And why not? After competitive forces proved heavy for the corporation once renowned for its paternalism, it will soon be known for its capitalistic nature. And its recent bid to take over UK’s Corus (a firm more than five times its own size) only shows how aggressive it has become. But after Brazil’s CSN gave a higher bid, what it does next will be an interesting move to watch. Will it bid higher or will it understand that being overambitious is not very great for its health. Certainly, as far as competition goes, given the fact that it will become the fifth-largest producer in the world and the total consideration for attaining both cultural and strategic synergies, it should go ahead with a higher bid. It cannot take very long to decide what it will do, because Corus’ shareholders will definitely take the higher bid (i.e. CSN’s bid). And since all hope and no action will lead to nowhere, it should understand right away that it should undergo the transformation very soon.

(End of Deepesh Pradhan column)

Who cares for 'EM'? Well, atleast the government should!

(column by Shruti Mishra)

With rising counts of crimes on the international front, I really appreciate your article, ‘Ocean’s Thirteen’ (B&E issue dated November 16, 2006) which addressed the problem of unethical practices that even successful firms are adopting these days to get ahead of the competition. For instance, even a day before Enron was acquitted (2001), no one could have ever imagined that such a successful corporation would have such a facade of deceit masking its true performance. It is also obligatory that governments should make some conscious efforts on their part to make sure that incidents don’t occur in the future. After all when a corporate doesn’t willing care for its shareholders, legal rules should force them to!

(End of Shruti Mishra column)