Start-up India Programme

17/01/2016

In connection with Start-Up India Programme, an extract from manuscript “What Ails Indian Economy” is given below.

“ENTREPRENEURSHIP

Several entrepreneur development courses are conducted by various institutes in the country. Not only the academic institutions but also professional institutions like Small Industries Service Institutes, Entrepreneur Development  Institutes etc,  are training thousands of people. But what is the result?  Have all those who attended the courses become entrepreneurs? Have all those who became entrepreneurs become   successful in their ventures? No, On the other hand , have not the people become entrepreneurs without any such training? Similarly have not self made entrepreneurs been more successful  than the institutes trained entrepreneurs? Main requisite for an entrepreneur to be successful is that there should be sufficient demand  for the products made by his factory. Competition, cost of production etc. are of secondary importance. Demand can be generated by providing full employment to all able bodied people.

To take a concrete example, let us assume that a village does not have a tailoring shop. None of the households  has sufficient money to invest in this shop. Now government comes forward and bears the expenditure of a person from the village to study in an entrepreneur school.  The government meets the transportation charges, tuition fee, hostel fee, expenses on buying books etc which comes to about Rs.50000/-. The  person comes back to the village, uses all his knowledge gained from studies in getting government grants, loans, sewing machines etc, and sets up a tailor shop. He manages to get a tailor from the nearby village on a fairly low pay. The rent for his shop is also low. But unfortunately, the knowledge he acquired by studying for two years does not help him to get customers for his shop because, the people of the village have no money with them to stitch clothes. They hardly  buy new clothes on more than once a year i.e. except during important festival time. During the rest of the period, the tailoring shop has to remain idle and the losses mount. (This is  the reason why none till then thought of setting p a tailoring shop. It is not because that they do not have entrepreneurial skill). Finally after three or four years, the shop is closed. The entrepreneur is unable to repay the loans he had taken from the government and financial institutions. The outright grant by the government goes waste.

Then what is required for producing a successful entrepreneur?  The one and only thing to be done is to provide buying power to the society. This can be done by providing jobs to all able bodied persons, or creating conditions for full employment. In that situation, if the village does not have a tailoring shop,the villagers will go to nearby village and small town to stitch clothes. If there is sufficient work, it will encourage some people to think  of setting up a tailor shop.  One of them will learn himself/herself by experience without much expenses, what the previous entrepreneur  learnt from the institute   at government cost. In addition, he will also get the practice of thinking on his own.  He will prove to be a successful entrepreneur,  His tailor shop will not be closed after two or three years, as the people will keep on coming to his shop, not only during festival times but also during the other times. If the villagers become more prosperous, they would stitch more clothes and the tailor shop would keep flourishing and expanding.

From the above, it is clear that entrepreneurs come up n their own or the society throws up entrepreneurs when they are needed and they would be successful. It is difficult or there is no need to spend money on creating entrepreneurs by conducting courses.”

 

 

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Trust in government

09/01/2016

Democracy is the government of the people. Once the people have elected a party to power, the intellectuals, NGOs, social activists etc. should repose faith in the intentions, ability , fairness etc. of the government and allow the government to pursue its policies, programmes etc. vigorously and should not organise agitations etc. which would slow the programmes of the government. However, every one has freedom of speech etc and they can try to explain to the people  as to how the current government’s  policies are against their interests.If the people are convinced of the opposition’s view they would vote out the present government in the next elections and bring in a new party to power.

Further whatever a Minister 9r a bureaucrat does in g00d faith should not be questioned by a successor government. This is necessary to ensure that the Ministers and bureaucrats do not avoid implementing their policies in fear of being questioned later.