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