You will agree with if you ever tried to start a venture in India. When I go to conferences and take part in discussion people say Indians are not that innovative, creative and daring to build something like Google, Facebook, LinkedIn, freelancer, okay I see we get the technical knowledge late so people around the world capture the market before we can enter it. But in FMCG…we are the biggest consumer market still HUL is largest seller here, why not an Indian company. If MacDonald can sell us burgers then why can’t we. By the way I know some people can oppose me by telling the number of software engineers in Silicon Valley or will count me a number of people on high rank responsibilities in big corporates.
Let me clear in advance, my concern is why we are CEO’s but not the owner…why we are a good suitable to handle that company but not to conceive, form and grow it. One more clarification I am not opposing any corporate. And I appreciate all ventures and their regard their success. I am a citizen of India and I am also running a venture. Now I am going to tell how we kill the ventures and why there are no big ventures in India.
1) Government policies: Let me start from the poorest of ventures. Recently In Delhi, Capital of India, E-Rickshaw was introduced. Some venture mind rickshaw pullers find it a good opportunity and they borrow money to buy them so as to increase their earning and have a better life. There were other benefits also. It was a zero pollution vehicle, It was a better option for users also. Then for an accident in which a child was died Supreme Court banned them and asked government to make a policy for safety. Although many a times people died by accident of car, train, plane but nobody ban them. Now poor people who borrow at 2-3% per month have ever worst life.
This was the basic example how things work here. Biggest of business houses have to face the same problems. Even Vodafone in 2G scam, they were not a party to scam still their licence was also suspended.
2) Shift of power:Let me make it clear by another example. Government announce a project and ask for bids. Companies bid there and get the project, then companies borrow from the bank to start work on it. After one or say two years government change and project is cancelled. No proper communication, no reason, and yes in first phase may be they have spent in paying bribe at various levels. Now pay the interest and wait for the day you will find some mediator to approach ministry.
3) Compliances: I can’t explain all the compliances but let me list some Act’s we need to follow.
- Income Tax Act,1961
- Companies Act, 2013
- Service tax Provisions
- VAT/ Profession Tax Provisions
- FEMA / RBI
- Excise Duty Related Provisions
- Custom Duty / DGFT Related Provisions
Even when we don’t have money to hire sales people we have to hire people to look after for all of this compliance. Also even after that you case is in scrutiny you will have to pay under the table to Income tax people
Think a hundred times before starting a new venture here.